Life and pensions group Phoenix on track to hit targets after solid business

Britain's largest pension fund consolidator Phoenix Group said today that it has seen a year-to-date cash generation of £734m, putting it on track to deliver a top-end end-of-year target of £650-£750m in the nine months to 30 September. Shares jumped on the news.

The insurer continues to discuss merger plans of Phoenix and Swiss Re's UK Admin Re Business Unit, which would result in the latter taking a minority shareholding in the former's consideration.

The firm's life companies made £300m during October 2013, giving a total cash generation, year-to-date, of £734m.

Pension scheme contributions of £89m were seen in the period, with £70m going to the Pearl pension scheme.

Total assets under management stove at £68.7bn, up from the half-yearly figure of £67.1bn.

Phoenix agreed to sell BA during the period, which holds the group's remaining general insurance business, to Berkshire Hathaway subsidiary, National Indemnity Company. The disposal is expected to have a marginally positive impact on the group's value.