The closed life fund consolidator revealed that its sale of Ignis Asset Management for £390m in cash to Standard Life Investments has supported a debt refinancing.
In its results for the six months to June 30 2014, the group reported that the divestment of Ignis completed on July 1 had supported a £250m pre-payment of bank debt.
Phoenix Group confirmed a reduction in its level of senior debt from more than £1.7bn to £1.2bn.
Group operating profit for the period was £266m, up from £186m in the same period the previous year.
It attributed £114m of its profits in the first half of the year to “management actions”, compared to £24m of profits generated by management actions a year earlier.
Phoenix Group said it had progressed the transformation of Phoenix Life with outsourcing partner HSBC “to consolidate investment fund accounting, unit pricing and custody arrangements, with completion expected in 2015”.
It also stated that vesting and recently annuitised customers had been given options to “take advantage” of the pensions changes revealed in this year’s Budget.
Clive Bannister, group chief executive, added: “The first half of 2014 has delivered many successes for the Group. The balance sheet has been transformed, our structure has been simplified and our reliance upon bank financing has been reduced.
“We have created a sound platform for Phoenix to consider potential acquisition opportunities, enabling us to grow the business and strengthen our existing position as the UK’s largest specialist consolidator of closed life funds.”
