Volatile markets hit Phoenix’s investments

Written by Adam Cadle

13/03/2023

Rising interest rates have hit the value of Phoenix Group’s bond holdings, with the value of the assets it manages plummeting by £46bn, from £310bn in 2021 to £259bn in 2022.

The group did however grow its business at record levels, with new business growth at £1,233bn, as it capitalised on the pensions buyout boom.

Phoenix carried out £4.8bn worth of bulk purchase annuity (BPA) deals in 2022.

However, the £4.8bn worth of BPA deals marked a 14% drop on the £5.6bn worth of pensions buyout deals Phoenix completed in 2021.

Phoenix outstripped the cash generation targets it previously set itself, generating £1,504bn in cash over 2022. This saw Phoenix exceed its aim to generate £1.3bn- £1.4bn worth of cash each year.

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