PHOENIX ON TARGET AND EMBRACES REGULATOR REVIEW

Phoenix Group Holdings, which acquires and manages closed books of life insurance, said Thursday that it is on track to meet all its financial targets. The company said that it generated £235m of cash in the first quarter of 2014 (compared with £410 in Q1 2013) and that it still expects cash generation of £500 - £550m in 2014. Phoenix also said that it had completed the sale of BA(GI) Limited, the group’s general insurance business, to National Indemnity Company for £21m in March. It also said that the proposed sale of Ignis Asset Management to Standard Life Investments for £390m will be complete by the end of the second quarter. As a result of the disposals, Phoenix expects to reduce its debt gearing to 40% by end of 2016. Clive Bannister, Group Chief Executive, commented: "We have continued our strong 2013 performance into the first three months of 2014, delivering a further £235 million of cash generation. We are on track to meet our full year cash target.” Commenting on the Financial Conduct Authority’s proposed thematic review of the fair treatment of long-standing customers in life insurance, Phoenix said that it has yet to receive further details in relation to the scope of the review. However, it welcomes the review, adding that it has demonstrated “best practice” within the closed life fund market.