Phoenix on track to hit top of 2013 cash generation target

25th Oct 2013 07:03

- Year-to-date cash generation of 734m pounds- Discussions with Swiss Re's UK Admin Re division "progressing"Phoenix said it was on track to hit the top end of its 2013 cash generation target range after a strong financial performance in recent months.The closed life fund group, which is in talks about a possible tie-up with Swiss Re's UK Admin Re business unit, generated £434m of cash in the nine months to the end of September and a further £300m from life companies so far in October. This means that cash generation year-to-date totals £734m, compared with its target for the year of between £650m and £750m.Its fund management business Ignis generated £1.4bn of net inflows from third parties in the nine months to the end of September following strong sales since the half year of its Absolute Return Government Bond fund.Total group assets under management have risen to £68.7bn at the end of January from £67.1bn at the half-year mark. Chief Executive Clive Bannister said: "Phoenix has extended its strong financial performance into the second half and I am delighted to confirm today we are on track to achieve the top end of our 2013 cash generation target and remain confident in our ability to meet all the other financial targets we have set ourselves."Merger talks with Swiss Re's UK Admin Re division were confirmed in July. Phoenix said the discussions were "progressing" and if successful were expected to result in Swiss Re holding a minority shareholding in Phoenix. TB