Phoenix Group, proprietor of Normal Life and Solar Life, has reserved £70m for the potential affect of Client Responsibility legacy product prices, it revealed in its annual outcomes in the present day.
The corporate added the reserve on its again guide because the July deadline nears for the extension of the FCA’s Client Responsibility to legacy merchandise.
The FCA will prolong its Client Responsibility necessities to legacy merchandise from this summer season, with many companies now reviewing legacy gross sales and recommendation. The regulator says it is going to be real looking however expects companies to satisfy its necessities for equity on costs throughout all merchandise.
Phoenix mentioned it was guaranteeing its steadiness sheet remained sturdy forward of a possible evaluation of legacy product costs and prices.
The corporate mentioned it had made the transfer, “following a complete evaluation of our back-book merchandise forward of the July 2024 compliance deadline.”
The reserve was disclosed together with what the corporate referred to as a “sturdy full 12 months 2023 outcomes.”
IFRS adjusted working revenue earlier than tax elevated 13% year-on-year to £617m (FY22: £544m5) helped by sturdy progress 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 sturdy 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 earnings enterprise, and we’re making nice progress in delivering our technique to attain this, as our sturdy 2023 monetary outcomes display.
“We’ve got achieved our 2025 progress goal two years early with £1.5bn of recent enterprise money delivered by our Normal Life enterprise – a brand new file. We delivered over £2bn of money technology and maintained our resilient steadiness sheet, and our sturdy efficiency has enabled the board to advocate a 2.5% dividend improve.
“The following section of our technique will see us steadiness our funding throughout our strategic priorities to develop, optimise and improve our enterprise. This can assist us in delivering the formidable new 2026 targets we’re asserting in the present day. 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 in the present day. The agency made £107m of revenue earlier than tax, in contrast with a loss earlier than tax of £145m in 2022.
