Phoenix Group beats expectations with strong profit, stock jumps 6%

Published 17/03/2025, 10:56
© Reuters.

Investing.com -- Shares of Phoenix Group Holdings (LON:PHNX) jumped more than 6% on Monday after the company posted full-year 2024 results that exceeded market expectations. 

The insurer reported an IFRS operating profit of £825 million, a 12% beat over consensus forecasts, driven by strong performance across its Pension & Savings and Retirement Solutions divisions.

Phoenix also raised its adjusted operating profit target for 2026 from £900 million to £1.1 billion. Additionally, the company upgraded its cumulative cash generation target for 2024-2026 from £4.4 billion to £5.1 billion, surpassing previous projections. 

Its Solvency II capital ratio of 172% came in slightly above consensus, and cash generation for the year totaled £1.78 billion, exceeding expectations by 17%.

Despite these strong numbers, Phoenix’s IFRS shareholders’ equity dropped 56%, largely due to economic variances and the impact of rising interest rates on investment returns. 

The company reported a pre-tax loss of £1.45 billion, missing analyst expectations, though the core business remains robust.

With the company reaffirming its capital strength and raising guidance for future profitability, RBC Capital Markets maintained its ’outperform’ rating, with a price target of 615 pence, underscoring optimism about Phoenix’s long-term outlook.

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