Phoenix Increases Dividend, Achieves Record Cash Generation
Phoenix achieved record annual cash generation and increased dividend by unveiling new cash flow targets.
The FTSE 100 company generated Â£ 1.7bn in cash in the year to the end of December, exceeding its target range of Â£ 1.5bn to Â£ 1.6bn. He proposed a final dividend of 24.1 pa per share, up 3% from a year earlier and bringing the annual payout to 47.5 pa per share, from 46.8 pence.
Operating profit rose to Â£ 1.2bn from Â£ 810m, including the acquisition of ReAssure in 2020. Assets under administration increased to Â£ 338bn from Â£ 248bn.
Phoenix said its 2021 cash generation target range was Â£ 1.5bn to Â£ 1.6bn and raised its 2021-2023 target to Â£ 4.4bn from 4.2bn. billion pounds sterling. The group increased its synergies target from the acquisition of ReAssure by 30% to Â£ 1.05 billion, based on higher capital synergies and further cost reductions.
Andy Briggs, Managing Director, said: “2020 was a pivotal year for Phoenix as we finalized the acquisition of ReAssure and became the UK’s largest long-term savings and retirement company. . We generated a record cash generation of Â£ 1.7 billion, our solvency balance. Sheet remained resilient, we achieved our strongest year of open business growth and we recommended a 3% increase in our 2020 final dividend. “
After purchasing the insurance arm of Standard Life in 2018, Direct Line agreed to acquire the Standard Life brand from Standard Life Aberdeen in February 2021. After starting as a buyer of closed life insurance funds, the group now has an âopenâ business offering savings and investment products to new clients.