(Reuters) – British insurer Phoenix Group reported a better-than-expected rise in full-year adjusted operating profit and total cash on Monday, helped by growth in its pensions and savings business.
The company’s pensions and savings business has been growing but it was forced last September to halt the sale of its business managing so-called pure protection insurance products, after a review into that market led to uncertainties around commissions.
However, growth in pensions and savings helped Phoenix forecast total cash generation of about 5.1 billion pounds ($6.6 billion) in the three years to 2026.
“We are ahead of plan from both a strategic and financial perspective, delivering Operating Cash Generation of (1.4 billion pounds) two years ahead of our 2026 target,” CEO Andy Briggs said in a statement.
The company, which specialises in buying up and managing books of life insurance business closed to new customers, said 2024 adjusted operating profit before tax was 825 million pounds, while total cash stood at 1.78 billion pounds.
Analysts were expecting profit of 734 million pounds and total cash of 1.52 billion pounds, according to a company-compiled consensus.
($1 = 0.7732 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich)
