Phoenix Group on track with £1.2bn in Standard Life Assurance savings

Chief executive Clive Bannister is due to retire in March. Picture: Contributed
Chief executive Clive Bannister is due to retire in March. Picture: Contributed
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Phoenix Group is on track to deliver the £1.2 billion in savings triggered by last year’s acquisition of Standard Life Assurance.

Europe’s largest life and pensions consolidator also announced £707 million of cash generation in 2019, up from £664m last year, exceeding the upper end of its target range.

Releasing a trading update to coincide with its capital markets day, the group said it had a £3bn surplus to meet Solvency II – a measurement to ensure it has the necessary funds to pay out pensions.

It told investors: “Phoenix remains on track to deliver the £1.2bn total synergy target for the Standard Life Assurance businesses transition which is progressing to plan. Phoenix continues to meet or exceed all customer service metrics.”

Phoenix Group is the largest life and pensions consolidator in Europe with some ten million policies and £245bn of assets under administration as of the end of June.

Under the deal between the group and Standard Life Aberdeen some 3,500 employees moved to Phoenix – about 2,900 of them based in Scotland.

Outsourcing

Phoenix recently announced a tie-up with software, technology and outsourcing giant Tata Consultancy Services (TCS), an Indian business that already has a presence in Edinburgh.

Clive Bannister, Phoenix Group chief executive, said: “This trading update further reinforces Phoenix’s conviction in its business model and its capacity to generate cash, deliver resilience and exploit multiple avenues of growth to deliver long-term sustainable cash generation, not just today but in the years ahead.

“We continue to place customers at the heart of what we do and are committed to delivering a high level of customer service.”

READ MORE: Standard Life Assurance owner Phoenix Group names new boss