Phoenix Group, proprietor of Customary Life and Solar Life, has reserved £70m for the potential impression of Client Responsibility legacy product prices, it revealed in its annual outcomes at this time.
The corporate added the reserve on its again e-book because the July deadline nears for the extension of the FCA’s Client Responsibility to legacy merchandise.
The FCA will lengthen its Client Responsibility 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 reasonable however expects corporations to fulfill its necessities for equity on costs throughout all merchandise.
Phoenix mentioned it was guaranteeing its stability sheet remained robust forward of a possible overview of legacy product costs and prices.
The corporate mentioned 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 yr 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 internet fund flows of £6.7bn elevated 72% year-on-year (FY22: £3.9bn), pushed by robust office flows and the agency mentioned it “considerably lowered” IFRS loss after tax to £88m (FY22: £2,657m) resulting from decrease market volatility impacts in 2023.
Phoenix Group CEO Andy Briggs mentioned: “Phoenix’s imaginative and prescient is to be the UK’s main retirement financial savings and revenue enterprise, and we’re making nice progress in delivering our technique to attain this, as our robust 2023 monetary outcomes exhibit.
“We’ve achieved our 2025 development goal two years early with £1.5bn of recent enterprise money delivered by our Customary Life enterprise – a brand new file. We delivered over £2bn of money era and maintained our resilient stability sheet, and our robust efficiency has enabled the board to suggest a 2.5% dividend enhance.
“The following section of our technique will see us stability our funding throughout our strategic priorities to develop, optimise and improve our enterprise. This can help us in delivering the formidable new 2026 targets we’re saying at this time. 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 at this time. The agency made £107m of revenue earlier than tax, in contrast with a loss earlier than tax of £145m in 2022.
