Phoenix Group halts plans to sell SunLife business

  • It said it will not sell  due to the ‘current uncertainty in the protection market’

Phoenix Group revealed that it has shelved plans to sell off its SunLife business, while the group also saw a boost in first-half profits. 

In a statement, the FTSE 100 insurer said it had decided to pull the plug on any potential sale due to ‘current uncertainty in the protection market. 

Towards the end of June, the savings giant said it was considering selling its SunLife business after deciding it was ‘no longer’ core to its operations.

In a statement, the FTSE 100 insurer said that it decided to pull the plug on any potential sales due to the ‘current uncertainty in the protection market’

The firm bought the division from AXA in 2016, along with the French insurance giant’s non-platform investment and pensions arm, AXA Wealth, as part of a £375million deal.

Founded in 1810, SunLife is a prominent provider of financial services, such as equity release, funeral plans, and life insurance for Britons aged over 50.

It was the first UK company to offer life assurance without a medical examination and made a £16million pre-tax profit last year. 

The company also posted its first half results, with adjusted operating profit rising year-to-year by 15 per cent to £360million.

The firm said this was driven by ‘profitable growth’ in both pensions and savings division, as well as its retirement solutions business.

It also saw a 19 per cent jump in its operating cash generation to £647million, which the group put down to a ‘strong delivery of recurring management actions’.

Phoenix also hit £950million in total cash generation in the period, with the group reiterating its desire to deliver at the ‘top end’ of its 2024 target of £1.4-1.5billion. 

Andy Briggs, chief executive of Phoenix, said he was pleased with the initial progress the firm has made in executing its three year plan.

Phoenix Group shares were down 2.69 per cent to 561p in early trading on Monday. 



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