Phoenix Group on track to meet expectations despite cash generation decline

24th Apr 2015 09:26

Investment group Phoenix Group said it was on track to meet its full-year targets, despite reporting a decline in first quarter cash generation.The FTSE 250 group generated £87m in cash in the first quarter, a 62.9% decline year-on-year, while total holding company cash totalled £1.03bn, up 4.2%."Phoenix Group remains well placed in a changing regulatory environment," said Clive Bannister, group chief executive."We are on track for both our Solvency II Internal Model Application and to achieve an investment grade credit rating during 2015."The group said it was aiming to generate between £200m and £250m this year as, due to uncertainty over the Solvency II regulations on capital for insurers across Europe, its life companies retain capital in the short term.Last year, the London-listed group reported £567m and in a statement released on Friday it said it wants to generate £2.8bn in cash between 2014 and 2019.Phoenix Group shares were up 1.96% to 859.00p at 10:28 on Friday.