Phoenix on track to hit cash generation target as profits rise

UK life insurer Phoenix said it was on track to hit the upper end of its annual cash generation target range as it unveiled higher interim profits on Wednesday.

The company said first-half operating profits rose 46% to £527m, but below forecasts of £539m, according to a company-compiled consensus poll.

Phoenix set a cash-generation target of £1.5bn - £1.6bn for 2021.

On a pre-tax basis, the company swung to £679m loss in the six months to June 30, compared to a profit of £663m a year ago. Phoenix cited an adverse investment return arising on hedging positions, along with increased amortisation charges on intangible assets and higher financing costs.

Cash generation more than doubled to £872m, beating forecasts of £772m and the interim dividend was lifted 3% to 24.1p a share.

"Phoenix has made further strong progress against our stated priorities of cash, resilience and growth," said chief executive Andy Briggs.

“We look forward to continuing to execute against our strategic priorities in the second half of the year as we build on our position as the UK's largest long-term savings and retirement business.”