Retirement savings business Phoenix is flying high after results / Image source: Adobe
  • Record cash generation last year
  • 2025 target hit two years early
  • Shares still yield 10% after rally

Insurer Phoenix Group (PHNX) delighted investors with its full-year results which showed it hitting its 2025 growth target two years early and introducing a new progressive dividend policy.

The shares jumped as much as 8% to 526p taking them to the top of the FTSE 100 leader board.


The group delivered over £2 billion in total cash generation last year, an increase of 33% on 2022 and above its upgraded target of £1.8 billion.

It also reported a record £1.51 billion of incremental new business long-term cash generation from the Standard Life business, achieving its 2025 target two years ahead of schedule.

‘Phoenix's vision is to be the UK's leading retirement savings and income business, and we are making great progress in delivering our strategy to achieve this, as our strong 2023 financial results demonstrate’, said chief executive Andy Briggs.

‘The next phase of our strategy will see us balance our investment across our strategic priorities to grow, optimise and enhance our business. This will support us in delivering the ambitious new 2026 targets we are announcing today. Our confidence in this strategy is demonstrated by the new progressive and sustainable dividend policy we will operate going forward.’


The firm has upped its final 2023 dividend by 2.5% to 26.65p, taking the full-year payout to 52.65p per share which even with today’s rally means the stock is on a 10% yield.

Operating cash generation is now expected to rise by around 25% from £1.1 billion last year to £1.4 billion by 2026, which will enable the group to pay down at least £500 million of debt while supporting the move towards ‘a new progressive and sustainable ordinary dividend policy’.

Operating efficiencies are also being targeted, with the group aiming to save around £250 million of annual costs by the end of 2026.

Disclaimer: The author Ian Conway owns shares in Phoenix Group.


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Issue Date: 22 Mar 2024