Phoenix Group Holdings PLC (LSE:PHNX) said it has set its first incremental new business long-term cash generation target at around £1.5bn by 2025 after stating it remains on track to deliver 2022 cash generation at the top end of its target range of £1.3bn to £1.4bn.
The life insurer said it expects to deliver around £1.2bn of incremental new business long-term cash generation in 2022 through organic growth, mainly through its Standard Life brand, which also has products open to new customers.
This comprises around £0.9bn from its Retirement Solutions business and around £0.3bn from its capital-light fee-based businesses (Pensions & Savings, Europe and SunLife).
Within pensions and savings, the Workplace business is expected to deliver a strong performance in 2022, with positive net fund flows of around £2.0bn (2021: £0.2bn) and about a 40% increase in incremental new business long-term cash generation to around £200mln (2021: £139mln).
"It is shaping up to be another outstanding year for Phoenix Group," the insurer's chief executive Andy Briggs said in a statement. "Alongside optimising our in-force business and mergers and acquisitions, our organic strategy is to deliver sustainable growth.”