Phoenix Group Holdings (PHNX.L), a consolidator of closed life and pension funds, Friday reported a profit for full-year 2012, mainly reflecting one-off benefits generated from ongoing system and modelling improvements. The shares are up about 7 percent in the morning trade.
Clive Bannister, CEO of the company said, "We have achieved all of our 2012 financial targets including cash generation, gearing reduction and MCEV enhancement; demonstrating the resilience of the Phoenix business model and our ability to generate long term shareholder value."
For the full year, profit before tax attributable to owners was 290 million pounds, compared to a loss of 177 million pounds in the prior year. On a per share basis, earnings were 226.2 pence, in comparison with a loss of 76.2 pence per share a year earlier.
Total revenues, net of reinsurance payable, for the year plunged to 1.17 billion pounds from 6.48 billion pounds in the preceding year. Net premiums written was a negative 3.56 billion pounds, com,pared to 1.39 billion pounds income in the prior year
Bannister said, "...Despite this uncertainty, Phoenix Life and Ignis Asset Management have provided good customer service and investment returns and we continue to work with our outsource partners to improve our proposition for policyholders."
In addition, the board has recommended a final dividend of 26.7 pence per share, up 27 percent from last year, to share holders of record on April 5, 2013, payable on May 3. This will bring the total dividend for the year to 47.7 pence.
Looking ahead, the company has set an increased cash generation target for 2011 to 2016 of 3.5 billion pounds.
The company aims to deliver operating companies' cash generation of between 650 million pounds and 750 million pounds in 2013. In addition, it maintained its annual average target of 100 million pounds of Market Consistent Embedded Value, or MCEV enhancements through management actions over the period 2011 to 2014.
PHNX.L is currently trading at 648.71 pence, up 43.21 pence or 7.14 percent.
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