Phoenix Group Holdings PLC (LON:PHNX) saw its shares rise on Thursday after the closed life assurance funds consolidator beat its cash generation target for 2017 and 2018 as more companies shift their pension risks.
In a trading update, the FTSE 250-listed firm said its cash generation hit £1.3bn in the 2017 and 2018 period, higher than the £1bn to £1.2bn targeted range, with £644mln of cash generated in 2018 and £653mln in 2017.
The company added that its assets under administration were stable at £240bn as at 30 September, reflecting net business inflows of £3.3bn at the end of the third quarter.
The group, which bought the bulk of Standard Life Aberdeen PLC's (LON:SLA) insurance business earlier this year said it closed two more bulk annuity deals in the second half of this year, after completing a £470mln deal with the Trustees of the Marks and Spencer Pension Scheme in May.
Phoenix said it has already delivered £400mln of capital synergies on the acquisition of the Standard Life Assurance business against a total £440mln capital synergy target announced for the transaction.
Clive Bannister, Phoenix’s Group CEO, commented: "We continue to deliver against our strategy with a further two bulk purchase annuity transactions completed in the second half of the year.
“Operationally, Diligenta will become our preferred outsource partner and enable us to deliver a single, digitally enhanced outsourcer platform to circa 5.5 million of our customers.”
In mid-morning trading, Phoenix shares were 1.3% higher at 608.50p.