The FTSE 100 firm, which owns Standard Life, reported a 31% increase in 2024 operating profit, reaching £825 million.

The group surpassed its 2026 operating cash generation target of £1.4 billion two years ahead of schedule, achieving £1.78bn. Consequently, its three-year total cash generation target has been raised to £5.1bn from £4.4bn. A final dividend of 27.35p per share, a 2.6% increase from 2023, was declared. The firm’s solvency ratio stood at 172%, exceeding the predicted 169%.

Phoenix Group CEO, Andy Briggs, said: “We made good progress in 2024 executing our 3-year strategy, delivering sustainable and profitable growth in both our Pensions and Savings and Retirement Solutions businesses. This has supported strong 2024 financial performance across our key metrics of cash, capital and earnings.

“We are ahead of plan from both a strategic and financial perspective, delivering Operating Cash Generation of £1.4bn two years ahead of our 2026 target. We continue to operate in the top half of our Shareholder Capital Coverage Ratio range and our strong cash generation has enabled us to repay debt whilst also investing in our business. Group IFRS adjusted operating profit was up 31% supported by particularly strong growth in our capital-light Pensions and Savings business. This performance has enabled the Board to recommend a Final dividend of 27.35p per share, representing a 2.6% annual increase.

“Our strong performance in 2024 and the operating momentum we have built will support us in delivering our growth strategy and have led us to upgrade our cash generation and adjusted operating profit targets through to 2026. Delivery will give us the financial flexibility to reduce our leverage, while also sustaining our progressive dividend for shareholders. It also brings us closer to realising our vision to be the UK’s leading retirement savings and income business.”