Phoenix Group Holdings PLC (LSE:PHNX), the life insurer, jumped to the top of the FTSE-100 movers list as it said cash generation following the merger of its funds with Standard Life had surged.
A one-off boost from the merger means the 2023 cash generation target jumps to £1.8 billion from £1.3-1.4 billion previously and the three-year target increases from £4.1 billion to £4.5 billion.
“Increased cash generation targets create further balance sheet optionality for the group,” said the statement, though presumably investors expect to see some of that handed back to them.
"The completion of the funds merger of the Standard Life and Phoenix Life businesses into Phoenix Life Limited, bringing together 8 million policies, is one of the largest UK insurance Part VII transfers ever completed," said Andy Briggs, Phoenix's chief executive.
"The Part VII transfer creates additional free surplus within our life companies through the realisation of the diversification benefit associated with our internal model harmonisation management action completed in 2021," Phoenix’s statement added.
Shares jumped 7.4% to 498.3p.