Phoenix has reported its highest ever cash generation of £1.71bn and raised its dividend following acquisitions.
About £400m of this cash generation was attributed to cost savings arising from the integration of the Standard Life and ReAssure brands.
Operating profit rose to £1.23bn in 2021, from £1.12bn the previous year.
The board is therefore recommending a final dividend of 24.8p per share, which includes its first ever organic dividend increase of 3%, meaning the stock is trading on a yield of 7.8%.
Assets under administration increased to £310bn as at the end of December, compared with £307bn at the end of 2020.
Group chief executive Andy Briggs said: “2021 marked a pivotal moment for Phoenix, with £1.2bn of new business from our Open business more than offsetting the run-off of our Heritage business for the first time.”
The head of its Open business - as opposed to its naturally declining closed-book side - Andy Curran, told The Herald that he believes Standard Life will help capitalise on market opportunities.
“We relaunched the brand at the beginning of quarter four last year and the reception received from the market was very positive indeed.”
“We will continue to invest in Standard Life, the Standard Life brand and Standard Life in Edinburgh - as a growing and thriving business we would hope to be creating more interesting and dynamic jobs for people who live in an around the Edinburgh area or Scotland as a whole.”
Phoenix acquired the Standard Life business for £3.2bn in 2018, taking over the related brand last May.
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