Phoenix Group, the UK’s largest long-term savings and retirement business, had a robust start to 2022 as cash regeneration grew and market volatility was managed with efficient hedging activities.
Phoenix Group cash generation rose 9% to £950m while New Business Long Term cash generation jumped 107% £430m.
“Phoenix has performed very strongly in the first half of the year despite the challenging macro environment. We have once again delivered a record set of financial results, which was underpinned by the strong progress we have made across our strategic priorities,” said Phoenix Group CEO, Andy Briggs.
Hargreaves Lansdown’s Steve Clayton shared the CEO’s sentiment and highlighted the positive impact of hedging throughout the business, as well as the possibility of additional acquisitions.
“These are a solid set of numbers from Phoenix that show the company executing well against all of their key targets. Cash generation is up and acquisitions have delivered their synergy expectations. The group have cash surplus and capital, so expect further acquisitions down the line,” said Steve Clayton, fund manager at HL Select.
“The business hedges risks to the maximum extent possible and saw little impact when markets tumbled in the first half. Crucially, Phoenix say this morning that they have almost no exposure to inflation, having hedged out their costs and product exposures. No doubt analysts will quiz them later on how long this hedging will run for. But right now, that protection from rising costs puts Phoenix in an enviable position relative to most UK companies.”