Insurer Phoenix exceeds full-year cash generation target (updated)
03/12/2020 08:07
(Adds background on European business, details from statement)
Dec 3 (Reuters) - Insurer Phoenix Group PHNX.L said on
Thursday it generated 1.7 billion pounds ($2.28 billion) in cash
this year, more than double of last year's tally and exceeding
its own bumped-up estimates.
The group has benefited from a flurry of bulk annuity deals
- insuring company-defined benefit or final salary pension
schemes - as firms offload their pension obligations on the back
of Brexit uncertainties and the coronavirus crisis.
The update comes a week after Phoenix said it was assessing
a range of strategic options for its European businesses after
recent third-party expressions of interest. It bought the
British ReAssure business of Swiss Re SRENH.S earlier this
year. urn:newsml:reuters.com:*:nL4N2IA1UO
A media report pegged the sale value of Phoenix's business
in Ireland and Germany at up to 650 million euros.
The company, a specialist in buying and managing books of
business closed to new customers, said Solvency II surplus rose
to 5 billion pounds as at September end from 4.4 billion pounds
in June on tight cost controls.
The London-listed company reported cash generation of 707
million pounds for 2019, and had raised its 2020 target range to
1.5-1.6 billion pounds in August.
($1 = 0.7461 pounds)
(Reporting by Pushkala Aripaka and Muvija M. in Bengaluru;
Editing by Rashmi Aich)
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