Phoenix Group has increased its full-year cash generation target after completing a merger of two brands.
On Monday (November 13) the firm completed a transfer of its Standard Life and Phoenix Life businesses into a single entity.
This has resulted in its 2023 cash target being increased to £1.8bn, up from between £1.3 and £1.4bn.
The group’s three year cash generation target has also risen from £4.1bn to £4.5bn across 2023-2025.
Phoenix Group CEO, Andy Briggs said: “This reaffirms Phoenix Group's position as the UK's leader at delivering cost and capital synergies and generating value for customers and shareholders.
“This funds merger enables us to materially upgrade our cash generation targets and creates further balance sheet optionality for the group."
The transfer of insurance businesses is one of the largest completed in the UK and brings together four legal entities made up of around £8mn policies and £200bn of assets.
In September, Phoenix Group's half year results showed long-term cash generation doubled to £885mn, compared with £430mn in the first half of 2022.
At the time, Briggs put this down to “strong organic growth” paired with inorganic growth through the purchase of Sun Life of Canada UK, hinting there could be more mergers and acquisitions on the horizon.
tara.o'connor@ft.com
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