Phoenix Group reveals record new business growth; BPAs biggest contributor

Phoenix Group recorded £1.6bn of bulk purchase annuity (BPA) premiums in H1 2022 across six transactions, a 280 per cent increase on the same period in 2021, according to the group's half-year results.

The results also revealed record H1 new business long-term cash generation of £430m, more than double H1 2021's £206m.

The retirement solutions business was again the largest contributor, according to the results, delivering £282m in new business long-term cash generation, compared to £80m in H1 2021.

Investment in the workplace pensions business also delivered "clear momentum" with net inflows of £1.7bn in H1 2022, up from £0.2bn in 2021, and 42 new schemes won in the first half, compared to 16 in H1 2021.

In addition to this, the group confirmed that there was a "strong pipeline" of H2 opportunities in place in both its BPA and workplace businesses.

It said it was "confident" in deploying its target capital allocation into BPA of around £300m in 2022, with £1.1bn of premiums already contracted in H2, and a further £1.1bn of premiums in exclusive discussions, including the Pearl Pension Scheme.

Phoenix also confirmed that the Shareholder Capital Coverage Ratio (SCCR) is currently above the target range of 140-180 per cent at 186 per cent, with the group holding "significant capital" to reinvest into both organic and inorganic opportunities.

In particular, this is expected to support an investment of around £300m of capital into BPA across 2022, funding the £248m Sun Life of Canada UK acquisition in cash at completion.

Commenting on the results, Standard Life, part of Phoenix Group, CEO, Andy Curran, commented: “Phoenix Group has once again delivered a record set of results in the first six months of 2022 – supported by the growth in our Standard Life business.

“We’ve embarked on building stronger relationships with financial advisers. We are investing further in our digital estate and are improving the competitiveness of our flagship personal pension.

"We have also begun moving over 1.5 million pension customers to sustainable investment solutions and when the exercise completes later this year, we will have switched £15bn in assets under management, underpinning our role in supporting our group’s commitment to sustainable focused investing.

“We continue to invest in our Standard Life brand, leveraging its strength and heritage and despite the uncertain economic environment, remain confident that our business is well placed to deliver attractive, sustainable growth for Phoenix Group.”

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