UK Stocks: Phoenix Group (PHNX) Considers Sale of SunLife Business; Shares Fall

Among the key news on UK stocks, Phoenix Group Holdings PLC (GB:PHNX) announced that it is considering the sale of its SunLife business. After conducting a strategic review of its operations, the company has determined that SunLife is no longer essential to its goal of becoming the leading retirement savings and income provider in the UK. In 2023, SunLife reported after-tax profits of £16 million.

Consequently, the board has opted to begin the sale process after receiving multiple expressions of interest from third parties. However, it also noted that there is no guarantee at this stage that the sale will be finalized.

Following the announcement, Phoenix’s shares fell by 2% as of writing.

Phoenix Group is a financial services company offering insurance, savings, and retirement solutions. Its SunLife business provides financial products, targeting individuals over 50.

Phoenix’s 2023 Financial Performance Recap

Overall in 2023, Phoenix Group achieved improved profitability, reporting a 13% year-over-year increase in IFRS-adjusted operating profit before tax, reaching £617 million. This growth was driven by a significant 27% year-on-year increase in adjusted operating profit in its Pension and Savings business, which rose to £190 million.

Additionally, the company generated £1.514 billion in incremental new business long-term cash, exceeding its 2025 target of £1.5 billion two years ahead of schedule. Total cash generation reached £2.024 billion, surpassing its revised target of £1.8 billion for the year.

Are Phoenix Group Shares a Good Buy?

According to TipRanks’ consensus, PHNX stock has received a Moderate Buy rating based on recommendations from seven analysts. This includes four Buy, one Hold, and two Sell ratings. The Phoenix Group share price forecast is 593.57p, which is 14.3% above the current price level.

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