BRITISH insurer Phoenix Group yesterday posted a £1.2bn paper loss as volatile markets hit the value of the insurance company's investment portfolio.

Shares in the FTSE 100 company fell slightly on the news as Phoenix pointed to the "challenging economic backdrop", though the firm did generate a record level of new business.

The insurer, however, upped its dividend as it successfully achieved its own cash generation targets and benefitted from its acquisition of Sun Life UK.

The FTSE 100 firm outstripped the cash generation targets it previously set itself, in generating £1.5bn in cash over 2022. This saw Phoenix exceed its aim to generate £1.3bn-£1.4bn worth of cash each year.

The insurer upped its dividend by five per cent, to 50.8p, in line with its pledges to grow its payouts.

"Phoenix has a simple strategy which is focused on the UK longterm savings and retirement market," Phoenix chief executive Andy Briggs said.

(c) 2023 City A.M., source Newspaper