Consolidator 

Phoenix consolidates legacy clients

Phoenix consolidates legacy clients

Phoenix Life has vowed to deliver a digitally enhanced platform for its legacy customers, which is due to be completed by end 2021.

In a market update today (November 29), the pensions consolidator announced it has selected business technology firm Diligenta to deliver a single platform, which it hopes will improve customer outcomes and deliver cost savings.

A Phoenix Life spokesperson said the provider currently deals with a number of outsourcers who handle the customer administration for the Phoenix Life heritage business, but these will now be moved onto Diligenta's platform.

"This platform is already available to a growing number of existing Phoenix Life heritage customers and is being continually developed to add new functionality," she added.

Clive Bannister, group chief executive, said: "Diligenta will become our preferred outsource partner and enable us to deliver a single, digitally enhanced outsourcer platform to circa 5.5 million of our customers."

Paul Gibson, managing director of Granite Financial Planning, said: "Phoenix are well known for offering terrible service, so any improvements are welcome."

He added: "My concern is it is three years away. Will they really spend the money needed to deliver the required improvements?"

Phoenix Group also revealed the acquisition of Standard Life's insurance arm has already delivered £400m of capital synergies against a target of £440m, as announced at the time of the transaction, which completed on 31 August.

This £3.2bn deal had been announced in February after Standard Life's merger with asset manager Aberdeen last year.

Phoenix Group has delivered £664m of cash generation to date in 2018, which compares with £653m in the same period of 2017.

Assets under administration remained stable at £240bn at the end of September, reflecting net business inflows of £3.3bn by end the end of Q3 on open business in the UK and Europe, it added.

Mr Bannister said: "We have delivered £1.3bn of cash generation in 2017 and 2018, exceeding the upper end of our target range of £1bn - £1.2bn and have significantly strengthened our Solvency II surplus position during the year to a group surplus of £3.1bn as at 30 September 2018."

maria.espadinha@ft.com