March 20, 2017 / 10:30 AM / 4 months ago

BRIEF-Phoenix Group says £486 million of cash generation in 2016

2 Min Read

March 20 (Reuters) - Phoenix Group Holdings -

* 486 million STG of cash generation (2015: £225 million), meeting group's 2016 cash generation target

* Solvency II surplus of 1.9 billion STG as at 31 December 2016, compared to 1.3 billion STG as at 31 December 2015

* FY group operating profit of 351 million STG versus 324 million STG in 2015

* Proposed final dividend of 23.9 pence per share, an equivalent 5 pct increase on 2015 final dividend

* Shareholder capital coverage ratio of 170 pct as at 31 December 2016

* Cost synergies now expected to be between 13 million STG to 15 million STG per annum, increased from original expectations of 10 million STG of cost savings per annum

* An expected further 5 pct increase in 2017 interim dividend to 25.1 pence per share, equivalent to 50.2 pence per share on annualised basis

* Of long-term target, between 1.0 - 1.2 billion STG of cash generation expected in two year period between 2017 - 2018

* "It is likely that uncertain market environment will prevail for a while longer"

* "Believe changing regulatory landscape and macroeconomic pressures will lead to further consolidation in UK life industry sector"

* Expect a further 4.4 billion STG of cash generation from 2021 onwards

* Expect future cash generation for existing business of 6.7 billion STG from start of 2017

* "Risk remains that business will be impacted by macroeconomic uncertainty or evolving regulatory environment" Source text for Eikon: Further company coverage:

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