Phoenix Group, proprietor of Commonplace Life and Solar Life, has reserved £70m for the potential affect of Shopper Obligation legacy product prices, it revealed in its annual outcomes right this moment.
The corporate added the reserve on its again e book because the July deadline nears for the extension of the FCA’s Shopper Obligation to legacy merchandise.
The FCA will lengthen its Shopper Obligation necessities to legacy merchandise from this summer time, with many companies now reviewing legacy gross sales and recommendation. The regulator says will probably be real looking however expects companies to satisfy its necessities for equity on fees throughout all merchandise.
Phoenix mentioned it was guaranteeing its stability sheet remained sturdy forward of a possible assessment of legacy product fees and prices.
The corporate mentioned it had made the transfer, “following a complete assessment of our back-book merchandise forward of the July 2024 compliance deadline.”
The reserve was disclosed together with what the corporate referred to as a “sturdy full yr 2023 outcomes.”
IFRS adjusted working revenue earlier than tax elevated 13% year-on-year to £617m (FY22: £544m5) helped by sturdy development in Phoenix’s pension and financial savings enterprise which was up 27% year-on-year to £190m (FY22: £150m).
New enterprise internet fund flows of £6.7bn elevated 72% year-on-year (FY22: £3.9bn), pushed by sturdy office flows and the agency mentioned it “considerably decreased” IFRS loss after tax to £88m (FY22: £2,657m) because of decrease market volatility impacts in 2023.
Phoenix Group CEO Andy Briggs mentioned: “Phoenix’s imaginative and prescient is to be the UK’s main retirement financial savings and earnings enterprise, and we’re making nice progress in delivering our technique to realize this, as our sturdy 2023 monetary outcomes show.
“We’ve achieved our 2025 development goal two years early with £1.5bn of recent enterprise money delivered by our Commonplace Life enterprise – a brand new file. We delivered over £2bn of money technology and maintained our resilient stability sheet, and our sturdy efficiency has enabled the board to suggest a 2.5% dividend improve.
“The subsequent part of our technique will see us stability our funding throughout our strategic priorities to develop, optimise and improve our enterprise. This may help us in delivering the formidable new 2026 targets we’re saying right this moment. Our confidence on this technique is demonstrated by the brand new progressive and sustainable dividend coverage we’ll function going ahead.”
• LV= reported a return to profitability in its 2023 outcomes out right this moment. The agency made £107m of revenue earlier than tax, in contrast with a loss earlier than tax of £145m in 2022.