Phoenix Group has reported a £36m increase in group operating profit in the first six months of this year, as well as strong cash generation of £433m.
The insurer and pension provider said operating profit amounted to £361m in H1, 11% higher than the £325m recorded in the same period last year.
While assets under administration stayed the same as in December, at £248bn, its shareholder capital coverage ratio also rose by eight percentage points to 169% in the six months.
Meanwhile, it confirmed it had completed £1.1bn of bulk annuity deals in the first half of the year, more than double the £0.5bn in the first six months of last year.
The insurer's transactions include a £800m buy-in with the LV= Employee Pension Scheme, announced last week.
With the £3.3bn acquisition of ReAssure completed last month too, Phoenix said it now had around 14 million policies and £324bn of assets under administration, with a pro-forma cash generation of £1.1bn in H1. Meanwhile, £11m per annum cost synergies and £120m of capital synergies were delivered by day one.
Chief executive Andy Briggs said: "Covid-19 has resulted in an unprecedented global crisis which has challenged each and every one of us. The resilience of Phoenix's business model has been evidenced through this period and ensured the continued delivery of cash and growth, which underpins our ability to continue to pay dividends in accordance with our stable and sustainable dividend policy.
"Despite the challenges of Covid-19 we have successfully completed the ReAssure acquisition, which establishes Phoenix as the UK's largest long-term savings and retirement business. I am extremely grateful to my colleagues for the unwavering commitment they have shown throughout this challenging time and look forward to what we will achieve together in the future.
"Although there remains much uncertainty as the pandemic continues to unfold, I am confident that Phoenix remains well positioned to continue to deliver cash, resilience and growth."
Aviva’s operating profit fell by 11% in the first half of the year as Covid-19 hit business activity, although a growth in bulk annuity sales partially offset the drop.
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