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Phoenix Group Holdings PLC (LSE:PHNX), a leading FTSE 100 pensions company, has decided to cancel its planned disposal of the life insurance subsidiary SunLife, which was initially announced in June. The decision comes amid ongoing uncertainty in the protection market, prompting the company to shift its focus toward enhancing value within the group.
Despite initial interest from potential buyers, Phoenix Group did not receive any substantial offers for SunLife. The planned sale had garnered a mixed response from analysts, reflecting varying perspectives on the move's strategic implications.
In its latest trading update, Phoenix Group reported an 83% increase in net fund flows for its workplace segment, driven by new scheme wins, including a significant £900 million asset transfer from a technology client. Adjusted operating profit rose by 15% to £360 million. However, the company experienced a rise in losses after tax, which increased from £245 million to £646 million, primarily due to higher interest expenses.
In response to its financial performance, Phoenix Group has announced a 2.5% increase in its dividend reflecting its commitment to delivering shareholder returns despite the challenging market conditions. The company remains focused on internal value creation and optimizing its existing assets as it adapts to evolving market dynamics.
