Phoenix reserves £70m for Shopper Obligation prices

Phoenix Group, proprietor of Commonplace Life and Solar Life, has reserved £70m for the potential impression of Shopper Obligation legacy product prices, it revealed in its annual outcomes right this moment.

The corporate added the reserve on its again e book because the July deadline nears for the extension of the FCA’s Shopper Obligation to legacy merchandise.

The FCA will prolong its Shopper Obligation necessities to legacy merchandise from this summer time, with many corporations now reviewing legacy gross sales and recommendation. The regulator says it is going to be life like however expects corporations to satisfy its necessities for equity on expenses throughout all merchandise.

Phoenix stated it was making certain its steadiness sheet remained robust forward of a possible overview of legacy product expenses and prices.

The corporate stated it had made the transfer, “following a complete overview of our back-book merchandise forward of the July 2024 compliance deadline.”

The reserve was disclosed together with what the corporate known as a “robust full 12 months 2023 outcomes.”

IFRS adjusted working revenue earlier than tax elevated 13% year-on-year to £617m (FY22: £544m5) helped by robust development in Phoenix’s pension and financial savings enterprise which was up 27% year-on-year to £190m (FY22: £150m).

New enterprise web fund flows of £6.7bn elevated 72% year-on-year (FY22: £3.9bn), pushed by robust office flows and the agency stated it “considerably lowered” IFRS loss after tax to £88m (FY22: £2,657m) on account of decrease market volatility impacts in 2023.

Phoenix Group CEO Andy Briggs stated: “Phoenix’s imaginative and prescient is to be the UK’s main retirement financial savings and earnings enterprise, and we’re making nice progress in delivering our technique to attain this, as our robust 2023 monetary outcomes show.

“We’ve achieved our 2025 development goal two years early with £1.5bn of recent enterprise money delivered by our Commonplace Life enterprise – a brand new document. We delivered over £2bn of money technology and maintained our resilient steadiness sheet, and our robust efficiency has enabled the board to suggest a 2.5% dividend improve.

“The subsequent part of our technique will see us steadiness our funding throughout our strategic priorities to develop, optimise and improve our enterprise. It will help us in delivering the bold new 2026 targets we’re asserting right this moment. Our confidence on this technique is demonstrated by the brand new progressive and sustainable dividend coverage we are going to function going ahead.”

• LV= reported a return to profitability in its 2023 outcomes out right this moment. The agency made £107m of revenue earlier than tax, in contrast with a loss earlier than tax of £145m in 2022.

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