Phoenix Group Holdings proposed a final dividend for 2017 of 25.1 pence per share, up 5% from 23.9 pence per share a year earlier.
The dividend, which is subject to shareholder approval at the company's annual general meeting May 2, is expected to be paid May 4. The record date for eligibility for payment will be March 23.
Phoenix Group reported a full-year 2017 consolidated loss attributable to owners of the parent of £27 million, compared to a loss of £101 million in 2016. The group said it will target long-term cash generation of £2.5 billion from 2018 to 2022 and further cash generation of £3.8 billion from 2023 onward.
The company also said it is in exclusive talks on a potential first bulk purchase annuity transaction. CEO Clive Bannister said the potential deal would be small and declined to disclose financial terms, Reuters reported March 15.
Bannister also signaled that Phoenix Group will not expand into open insurance books, which account for only about 1.5% of the company's profit, according to the report. Phoenix Group is buying Standard Life Aberdeen Plc's insurance business for approximately £3.24 billion.
Bannister said the company is a closed life business, meaning that it buys up insurers that are no longer writing policies. To shift into open insurance books "would fly in the face of our strategic logic," he said.
