Phoenix Group Holdings said it achieved strong cash generation in the first quarter and remains on track to meet its financial targets.
The company reported £410m of cash for the first three months of the year, driven largely by free surplus within its Life division which benefitted from significant management actions last year including an annuity transfer transaction.
During the quarter, the group completed capital raising and debt reterming, including a £450m debt prepayment which reduced gearing to 48%.
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Phoenix is targeting a cash generation of £650-£750m in 2013 from operating companies and £3.5bn in 2011-2016. It hopes to gain cumulative incremental Market Consistent Embedded Value enhancements of £400m in the period from 2011-2014 to reduce gearing to 40% by end of 2016.
"The first quarter has seen us further demonstrate our consistent financial performance and I am pleased to report a strong set of results, showing £410m of cash generation and robust group solvency," said Group Chief Executive, Clive Bannister.
"We are on track to meet all of our financial targets for 2013 and beyond. We remain confident in our ability to continue to generate cash and enhance shareholder value. The completion of the capital raising and debt reterming during the quarter has delivered capital stability and we are well positioned for the future."
Shares rose 0.55% to 643p at 14:25 Friday.
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