Phoenix Group shrugs off ‘challenging’ backdrop with record first half

Bosses at Phoenix Group have said the insurance giant performed “very strongly” over the first half of 2022 despite the “challenging” economic backdrop.

The life insurance and savings firm said it is confident about its outlook for the rest of the year after cash generation increased by 8.9% to a record £950 million over the six months to June, compared with the same period last year.

It told shareholders that it expects cash generation to be at the top end of its target range of £1.3 billion to £1.4 billion for the whole of 2022.

Phoenix said this was buoyed by new business, with cash generated by new clients more than doubling to £430 million over the half year.

The update comes a week after Phoenix continued its recent acquisition activity with a £248 million takeover of Sun Life UK.

Phoenix also increased its interim dividend by 3% to 24.8p per share as it hailed the results.

Andy Briggs, chief executive officer of Phoenix Group, said: “Phoenix has performed very strongly in the first half of the year despite the challenging macro environment.

“We have once again delivered a record set of financial results, which was underpinned by the strong progress we have made across our strategic priorities.

“We have been working tirelessly to ensure we can support our customers and colleagues impacted by the increased cost of living, building on our programme of activities for our most vulnerable customers and offering a range of support to our colleagues including a one-off payment.

“As the UK’s largest long-term savings and retirement business, we are driven by our core social purpose.”