Phoenix Group has raised its full-year cash generation forecast after announcing that it has completed the funds merger of its Standard Life and Phoenix Life businesses into Phoenix Life Ltd, uniting the businesses of four entities.
The transfer has resulted in its 2023 cash target being increased to £1.8 billion, up from between £1.3 and £1.4 billion.
At the same time, the British insurer’s three year cash generation target has also risen from £4.1 billion to £4.5 billion across 2023-2025.
In addition, the transfer of insurance businesses is one of the largest to be completed in the UK and brings together four legal entities made up of around £8 million policies and £200 billion of assets.
The Part VII transfer also creates additional free surplus within Phoenix Group’s life companies through the realization of the diversification benefit associated with the company’s internal model harmonization management action completed in 2021.
Phoenix Group CEO, Andy Briggs, commented: “The completion of the funds merger of the Standard Life and Phoenix Life businesses into Phoenix Life Limited, bringing together 8 million policies, is one of the largest UK insurance Part VII transfers ever completed.
“This reaffirms Phoenix Group’s position as the UK’s leader at delivering cost and capital synergies and generating value for customers and shareholders. This funds merger enables us to materially upgrade our cash generation targets and creates further balance sheet optionality for the Group.”
