Pensions giant Phoenix Group has hit its 2025 target for long-term cash generation two years early after seeing strong growth across a number of its divisions.
In a trading update, Phoenix said its new business long-term cash generation, a key measure of future profitability, was around £1.5bn in 2023.
“This means we have achieved our 2025 new business long-term cash target two years early, reflecting the focus and investment we have put into our growth strategy,” boss Andy Briggs said.
The firm reported that net fund flows were up to around £7bn in 2023, a roughly 80 per cent increase on the year before.
Workplace net fund flows nearly doubled year-on-year to reach around £4.5bn, with a large part of this coming from the transfer of the Siemens workplace scheme.
Phoenix also saw growth in its Retirement Solutions business, driven by deals in Bulk Purchase Annuities (BPA). Phoenix completed seven BPA transactions in the second half of last year, covering around £2.8bn of premiums.
Through its Standard Life brand, Phoenix has also been ramping up its activity in bulk annuities — where insurance firms buy company-defined benefits, or final salary and pension schemes — as demand for corporate pension insurance deals grows.
The firm said its strong performance reflects “clear strategic focus and investment into growth”, which has been accelerated by a “supportive economic environment”.
The firm will announce its full-year results on 22 March.