Business
2018 Full Year Results
2018 Full Year Results.
About this update from Standard Life Plc
[{"type":"text","content":"\n \nRNS Number : 8542R Phoenix Group Holdings PLC 05 March 2019 \n\nPhoenix Group announces strong results after a transformational year. New cash generation targets set and synergy target increased by £500 million to £1.2 billion\nPhoenix Group, Europe's largest life and pensions consolidator1, today announces a strong set of results for the year ended 31 December 2018.\n2018 Highlights\n· £664 million of cash generation2 in 2018 (2017: £653 million). The Group has delivered £1.3 billion cash generation in 2017 and 2018, exceeding the upper end of its cash generation target range of £1.0 billion - £1.2 billion for this period.\n· Solvency II surplus of £3.2 billion3 as at 31 December 2018 (£2.5 billion pro-forma as at 31 December 2017).\n· Shareholder Capital Coverage Ratio of 167%4 as at 31 December 2018 (147% pro-forma as at 31 December 2017).\n· Proposed final dividend of 23.4p per share, a 3.5% increase on the 2017 final dividend.\n· Group operating profit of £708 million (2017: £368 million).\n· Assets under administration of £226 billion as at 31 December 2018 (31 December 2017 pro-forma: £240 billion). Net business inflows of £3.9 billion on UK Open and European businesses.\n· New business contribution5 of £154 million (2018 pro-forma) demonstrates value accretive nature of Open new business in the UK and Europe.\n· Fitch Ratings affirmed the Group's ratings at A+6; \"stable\" outlook. Leverage ratio 22%7.\nNew cash generation targets\n· 2019 cash generation target of £600 - £700 million8.\n· Long-term cash generation target for 2019 - 2023 of £3.8 billion.\nAcquisition of the Standard Life Assurance businesses\n· Acquisition of the Standard Life Assurance businesses completed on 31 August 2018.\n· Total synergy target (net of £150 million transition costs) increased by £500 million from £720 million to £1,220 million:\n- Capital synergies new target of £720 million (increased from £440 million); with £500 million delivered to date; and\n- Capitalised cost synergies new target of £650 million (increased from £415 million); reflecting an increase from £50 million to £75 million per annum.\nDelivering on strategic priorities\n· Successfully entered bulk purchase annuity market contracting £0.8 billion of liabilities in 2018.\n·...