The coronavirus crisis is defined to speed-up the rate of dealmaking in british life insurance, based on andy briggs, phoenix chief executive, as companies aim to rid themselves of old organizations they no more wish.

Many insurers have big publications of legacy services and products, consisting of long-lasting guidelines which were offered to customers years ago but no further participate in their programs. numerous specialists being establish buying these books and operate all of them better by saving money.

Phoenix has-been at the forefront for the trend. in 2018 it paid 3.2bn for traditional lifestyle aberdeens insurance business, while final thirty days it finished the 3.2bn purchase of reassure, certainly one of its main competitors, from swiss re.

Mr briggs, a former friends lifetime and aviva manager just who joined up with phoenix this current year, stated the crisis would prompt even more discounts.

We are very upbeat towards possible outlook for additional m&a in the a lot of companies are struggling with their balance sheets, theyre fighting their valuations, theyre struggling to pay for dividends, he said.

Phoenix is about to start integrating reassure, a procedure that will encounter next year, but mr briggs said that could not stop the organization from performing even more discounts.

M&a continues to be a core central element of our strategy, he said. if the right offer arrived on right price we would manage to examine that...but were not pounding the roads morning, noon and evening seeking next bargain now because weve got plenty on the road currently.

Phoenixs main target is the uk, but mr briggs stated the organization may seek out discounts in europe when you look at the moderate term.

He had been speaking as phoenix reported outcomes for 1st half of the entire year. money generation one of several companys favored measures of profitability rose 51 per cent to 433m, which was in front of experts expectations. phoenix also increased its cash generation target the 12 months from a range of 800m-900m to a selection of 1.5bn-1.6bn after the conclusion associated with the reassure price.

Pre-tax profits rose from 217m to 611m, together with company declared a 23.4p per share first-half dividend, that has been degree with just last year. many of the uks insurers suspended their particular dividends earlier on around due to the crisis, but phoenix squeezed ahead along with its payout.

Phoenix stocks rose 1 % on thursday and are also down 7 % in the year up to now, against a 22 per cent decline in ftse 350 life insurance index.