Pension giant Phoenix Group - which now includes Edinburgh-based Standard Life Assurance – generated £707 million of cash, up from £664 million in 2018.
In its capital markets day, the company told investors and analysts that this cash injection exceeded its target, between £600 to £700 million, and the group has a £3 billion surplus to meet Solvency II, a measurement to ensure it has the necessary funds to pay out pensions.
The company said it is on track to deliver the £1.2 billion savings from the integration of its Standard Life Assurance acquisition which was completed on 1 January 2018.
The Phoenix Group is the now largest life and pensions consolidator in Europe with 10 million policies and £245 billion of assets under administration as at 30 June 2019.
The trading update said the £440 million of incremental long-term cash generation from £205 million of new business and £235 million from £1.1 billion of Bulk Purchase Annuity liabilities.
Chief executive officer Clive Bannister said: "This trading update further reinforces Phoenix's conviction in its business model and its capacity to generate Cash, deliver Resilience and exploit multiple avenues of Growth to deliver long-term sustainable cash generation, not just today but in the years ahead. We continue to place customers at the heart of what we do and are committed to delivering a high level of customer service and to improving customer outcomes.
