Business
2023 Interim Results
2023 Interim Results.
About this update from Standard Life Plc
[{"type":"text","content":"\n\nPhoenix Group is executing on its strategy, delivering strong organic growth and resilient cash generation\nWe are delivering sustainable organic growth\n· 106% year-on-year increase in H1 incremental new business long-term cash generation to £885m (H1 2022: £430m).\n· Comprises £665m from Retirement Solutions (H1 2022: £282m) and £220m from our capital-light fee-based businesses (H1 2022: £148m).\n· 72% year-on-year increase in new business net fund flows to £3.1bn (H1 2022: £1.8bn).\n· Phoenix is now on track to deliver positive Group net fund flows from 2024, for the first time in its history.\n \nWe continue to deliver high levels of dependable cash generation\n· £898m1 of cash generation2 (H1 2022: £950m); now confident of delivering at the top-end of our £1.3bn-to-£1.4bn target range for the year.\n· £12.5bn of Group in-force long-term free cash increased by c.£0.4bn (FY22: £12.1bn) with strong growth both organically and through M&A, more than offsetting our annual uses of cash.\n \nOur resilient balance sheet supports investment in growth\n· 180%3,4 Solvency II Shareholder Capital Coverage Ratio ('SCCR') (FY22: 189%4) remains at the top-end of our target range of 140-180%, providing capacity to invest in growth opportunities, as we have done in the first half.\n· £3.9bn3 Solvency II Surplus at 30 June 2023 remains resilient (FY22: £4.4bn).\n \nWe have the financial flexibility to support our strategy, including the capacity to raise further debt\n· We have proactively de-levered our balance sheet through the repayment of £772m of debt since the end of 2020.\n· Alongside updating our Fitch leverage ratio calculation for IFRS 17, we have also updated the calculation to include the policyholder estate for market consistency, and this was agreed with Fitch as part of our annual review.\n· Our restated FY22 Fitch leverage ratio is 25%5, which is at the bottom of our 25-30% target range, and leverage is not a constraint to our M&A ambitions.\n \nA sustainable dividend that grows over time\n· The Board has declared a 2023 Interim dividend of 26.0 pence per share, equal to the 2022 Final dividend,...