Phoenix unveils strong results underpinned by solid cash generation

FTSE 250-listed closed life fund consolidator Phoenix Group has unveiled strong results for the financial year ended December 31st underpinned by solid cash generation from its operating companies.

FTSE 250-listed closed life fund consolidator Phoenix Group has unveiled strong results for the financial year ended December 31st underpinned by solid cash generation from its operating companies.

The group's operating companies' cash generation was valued at £690m, compared to £810m, at the upper end of the £600-to-£700m target range and £1.1bn of cash was recorded at the group's holding companies as of December 31st. This compared to £837m in 2011.

Phoenix reported a 27% increase in its recommended final dividend to 26.7p per share and reported that gearing had reduced from 57%, as of December 31st 2011, to 48% on a pro forma basis as of December 31st 2012.

The group IRFS operating profit was worth £410m, up from £395m in the previous year and group assets under management were worth £68.6bn, excluding an additional £1.6bn of assets expected to transition back to Ignis during 2013 under the investment management mandate agreed with Guardian Assurance.

Over the course of the year, the group accelerated the release of £252m of capital through an agreement to transfer approximately £5.0bn of annuity in payment liabilities to Guardian Assurance.

The life company structure was further streamlined through the completion of two funds mergers, leaving three UK life companies and accelerating the release of £192m of capital.

An additional 780,000 policies were transferred from legacy systems to modern policy administration platform and investment performance at Ignis continued with 79% of assets outperforming against benchmark and peer group.

Group Chief Executive Officer Clive Bannister said: "Phoenix delivered strong financial performance in 2012. We have achieved all of our 2012 financial targets including cash generation, gearing reduction and MCEV [Market Consistent Embedded Value] enhancement, demonstrating the resilience of the Phoenix business model and our ability to generate long term shareholder value.

"The debt re-terming and equity raising announced in January 2013 has significantly strengthened our balance sheet, improved our capital structure, and allowed us to increase shareholder dividends," he added.

MF

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023
Can I avoid IHT by stuffing all my money into a pension?
Personal finance

Can I avoid IHT by stuffing all my money into a pension?

The ditching of the lifetime allowance could enable millions of pension savers to avoid inheritance tax. We explain how.
20 Mar 2023