Phoenix Group, proprietor of Customary Life and Solar Life, has reserved £70m for the potential affect of Shopper Obligation legacy product prices, it revealed in its annual outcomes at present.
The corporate added the reserve on its again ebook because the July deadline nears for the extension of the FCA’s Shopper Obligation to legacy merchandise.
The FCA will prolong its Shopper Obligation necessities to legacy merchandise from this summer time, with many corporations now reviewing legacy gross sales and recommendation. The regulator says it is going to be sensible however expects corporations to satisfy its necessities for equity on costs throughout all merchandise.
Phoenix mentioned it was making certain its steadiness sheet remained robust forward of a possible overview of legacy product costs and prices.
The corporate mentioned it had made the transfer, “following a complete overview 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 “robust full yr 2023 outcomes.”
IFRS adjusted working revenue earlier than tax elevated 13% year-on-year to £617m (FY22: £544m5) helped by robust development in Phoenix’s pension and financial savings enterprise which was up 27% year-on-year to £190m (FY22: £150m).
New enterprise web fund flows of £6.7bn elevated 72% year-on-year (FY22: £3.9bn), pushed by robust office flows and the agency mentioned it “considerably lowered” IFRS loss after tax to £88m (FY22: £2,657m) as a consequence 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 robust 2023 monetary outcomes display.
“We now have achieved our 2025 development goal two years early with £1.5bn of latest enterprise money delivered by our Customary Life enterprise – a brand new document. We delivered over £2bn of money technology and maintained our resilient steadiness sheet, and our robust efficiency has enabled the board to suggest a 2.5% dividend improve.
“The subsequent section of our technique will see us steadiness our funding throughout our strategic priorities to develop, optimise and improve our enterprise. This may assist us in delivering the bold new 2026 targets we’re saying at present. Our confidence on this technique is demonstrated by the brand new progressive and sustainable dividend coverage we are going to function going ahead.”
• LV= reported a return to profitability in its 2023 outcomes out at present. The agency made £107m of revenue earlier than tax, in contrast with a loss earlier than tax of £145m in 2022.