Phoenix awaits boost from Ignis deal in Q2

Phoenix Group Holdings is awaiting a boost from the Ignis deal, set to complete in Q2, as it sees a drop in cash generation in Q1 compared to last year.

Earlier this year, the struggling closed-life company sold off its investment management arm, Ignis Asset Management, to Standard Life Investments for £390m, a deal widely considered undervalued. Upon completion of the deal, which is expected in the second quarter, the group will receive a debt prepayment of £250m, which will boost cash generation and help it with its target to reduce gearing. In Q1 cash generation was helped by the divestment of BA(GI) Limited, the group's residual general insurance business, which brought in £21m, but it still only reached £235m, compared to £410m i...