Phoenix reports 31% boost in annual profit

Written by Michael Griffiths

18/03/2025

Phoenix Group has announced a 31% jump in IFRS adjusted operating profit to £825m in 2024, up from £629m last year.

The insurance company said the growth was boosted by performances in both its pensions and savings (£316m) and retirement solutions (£474m) divisions.

Phoenix also announced that its operating cash generation (OCG) increased 22% to £1.4bn, which was driven by “increased surplus from growing businesses” and “strong delivery of recurring management actions”.

The group added that £537m of recurring management actions, up from £313m in 2023, was enabled by enhanced capabilities in its “scaled” asset management function.

In terms of cash generation, Phoenix also revealed its cumulative three-year target increased from £4.4bn to £5.1bn across 2024-26, driven by the sustained growth in OCG. It now expects to generate excess cash of £1.1bn across 2024-26 and this will be allocated in accordance with its capital allocation framework, which has a focus on deleveraging.

“We made good progress in 2024 executing our three-year strategy, delivering sustainable and profitable growth in both our pensions and savings and retirement solutions businesses,” commented Phoenix Group CEO, Andy Briggs. “This has supported strong 2024 financial performance across our key metrics of cash, capital and earnings.

“We are ahead of plan from both a strategic and financial perspective, delivering OCG of £1.4bn two years ahead of our 2026 target. We continue to operate in the top half of our shareholder capital coverage ratio range and our strong cash generation has enabled us to repay debt whilst also investing in our business.”

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