'Pivotal moment' as Standard Life owner Phoenix hails record intake

Phoenix Group, the insurer that acquired the Edinburgh-headquartered Standard Life Assurance business in 2018, has announced record cash generation of more than £1.7 billion in 2021.
Watch more of our videos on Shots! 
and live on Freeview channel 276
Visit Shots! now

The firm surpassed its target range of £1.5bn to £1.6bn in the last 12 months, with organic growth from its “open” business more than offsetting the natural run-off of its “heritage” business.

Last year, the group bought the iconic Standard Life brand after funds giant Standard Life Aberdeen opted to change its name to Abrdn.

Hide Ad
Hide Ad

Phoenix said at the time the purchase of the Standard Life brand was “strategically important” to the group as it looks to increase its presence in a number of key markets - workplace pensions, bulk purchase annuities, lifetime mortgages and retail savings.

Andy Curran, CEO of Standard Life, part of Phoenix Group. Picture: Chris CloseAndy Curran, CEO of Standard Life, part of Phoenix Group. Picture: Chris Close
Andy Curran, CEO of Standard Life, part of Phoenix Group. Picture: Chris Close

Publishing its financial results for 2021, the firm said that having acquired the “trusted” Standard Life brand, it could now “fully leverage it to accelerate our future growth”.

Andy Curran, chief executive of Standard Life, said: “The past year has been a hugely successful year for Phoenix Group and included the major milestone of us acquiring the Standard Life brand. The Standard Life brand’s strength and the financial backing of the group is proving powerful.

“We want to deliver on our purpose of helping people secure a life of possibilities by making financial security in retirement more achievable, more widespread and generally fairer,” he added.

Hide Ad
Hide Ad

Steve Clayton, fund manager of the HL Select UK Income Shares fund, which holds a position in Phoenix Group, said: “This is a pivotal moment for Phoenix. Ever since the Standard Life acquisition the group has been talking about ‘proving the wedge’. The revelation that new business is now more than offsetting the natural decline of the acquired legacy books upon which the group is built shows that the group is now driving its own destiny organically.

“The dividend increase announced today leaves the stock trading on a very attractive yield of 7.8 per cent,” he added. “Phoenix’s challenge is now to prove that they can indeed maintain their new business capabilities and support the growth of their dividend into the future.”

Read More
Standard Life outlines 'ambitious investment plans' to build on brand's 'great h...

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.