The coronavirus crisis is placed to speed up the pace of dealmaking in british life insurance policies, relating to andy briggs, phoenix chief executive, as organizations aim to rid themselves of old businesses they no further wish.

Many insurers have actually huge publications of legacy services and products, composed of long-lasting guidelines which were offered to clients years ago but not remain in their plans. a number of experts happen put up purchase these publications and operate them better by saving cash.

Phoenix happens to be at the forefront regarding the trend. in 2018 it paid 3.2bn for standard life aberdeens insurance coverage company, while final thirty days it finished the 3.2bn purchase of reassure, one of its main competitors, from swiss re.

Mr briggs, a former friends lifetime and aviva professional just who joined up with phoenix this present year, stated the crisis would prompt more deals.

We have been really optimistic concerning the possible perspective for additional m&a within the a lot of companies tend to be suffering their stability sheets, theyre fighting their particular valuations, theyre struggling to pay for dividends, he stated.

Phoenix is mostly about to begin integrating reassure, an activity which will run into next year, but mr briggs stated that will not end the business from doing more deals.

M&a continues to be a core central element of our strategy, he stated. in the event that right package came along in the right price we'd have the ability to check that...but weren't beating the roads morning, noon and evening finding the following package right now because weve got lots away from home currently.

Phoenixs primary target is the uk, but mr briggs stated the company may seek deals in europe within the moderate term.

He was speaking as phoenix reported results for 1st half the year. money generation one of several companys chosen measures of profitability rose 51 % to 433m, that has been ahead of experts objectives. phoenix in addition enhanced its money generation target the year from a variety of 800m-900m to a variety of 1.5bn-1.6bn following the completion of this reassure package.

Pre-tax profits rose from 217m to 611m, and also the company declared a 23.4p per share first-half dividend, which was amount with just last year. most of the uks insurers suspended their particular dividends earlier on in the year due to the crisis, but phoenix squeezed forward featuring its commission.

Phoenix shares rose 1 per cent on thursday and so are down 7 % around up to now, against a 22 percent decrease within the ftse 350 life insurance coverage list.