Source: Sharecast
The company, which said it was "firmly on track" to hit its medium-term targets after a strong first half, also announced that it is to change its group name to Standard Life in March 2026, "helping with our objective to simplify our business". Standard Life was acquired in 2018.
"This move brings our most trusted brand to the forefront and demonstrates our commitment to helping customers secure a better retirement," said chief executive Andy Briggs. "It also reduces duplication and costs, and it supports our organic growth strategy."
Adjusted operating profit over the six months to 30 June totalled £451m, up 25% over last year, helped by £100m in cumulative annual run-rate cost savings, and improved performances from both main operating businesses, Pensions and Savings and Retirement Solutions.
Operating cash generation improved 9% to £705m, which Phoenix said was driven by a higher contribution from recurring management actions of £294m, up from £264m previously.
The company also said its capital position remained "resilient" with a Solvency II surplus of £3.6bn, up £0.1bn than last year, while the shareholder capital coverage ratio improved to 175% from 172%, towards the top-end of the 140-180% operating target range.
"I'm particularly pleased that this set of results evidences that the balance sheet pivot is beginning to show, as reflected in improved Solvency II balance sheet metrics, driven by the growth of the businesses post investment," Briggs said.
Looking ahead, Briggs said he is "optimistic", adding: "The UK retirement savings and income market is huge and structurally growing and we are increasingly well placed to take advantage of the attractive opportunities it presents and deliver strong returns to our shareholders, supported by changing to Standard Life plc in March 2026."
Shares were down nearly 7% at 624.5p in afternoon trade, having jumped by more than 30% over the year to date (as of Friday's close).