The company added the reserve on its back book as the July deadline nears for the extension of the FCA’s Consumer Duty to legacy products.

The FCA will extend its Consumer Duty requirements to legacy products from this summer, with many firms now reviewing legacy sales and advice. The regulator says it will be realistic but expects firms to meet its requirements for fairness on charges across all products.

Phoenix said it was ensuring its balance sheet remained strong ahead of a potential review of legacy product charges and costs.

The company said it had made the move, “following a comprehensive review of our back-book products ahead of the July 2024 compliance deadline.”

The reserve was disclosed along with what the company called a “strong full year 2023 results.”

IFRS adjusted operating profit before tax increased 13% year-on-year to £617m (FY22: £544m5) helped by strong growth in Phoenix’s pension and savings business which was up 27% year-on-year to £190m (FY22: £150m).

New business net fund flows of £6.7bn increased 72% year-on-year (FY22: £3.9bn), driven by strong workplace flows and the firm said it “significantly reduced" IFRS loss after tax to £88m (FY22: £2,657m) due to lower market volatility impacts in 2023.

Phoenix Group CEO Andy Briggs said: “Phoenix’s vision is to be the UK’s leading retirement savings and income business, and we are making great progress in delivering our strategy to achieve this, as our strong 2023 financial results demonstrate.

“We have achieved our 2025 growth target two years early with £1.5bn of new business cash delivered by our Standard Life business – a new record. We delivered over £2bn of cash generation and maintained our resilient balance sheet, and our strong performance has enabled the board to recommend a 2.5% dividend increase.

“The next phase of our strategy will see us balance our investment across our strategic priorities to grow, optimise and enhance our business. This will support us in delivering the ambitious new 2026 targets we are announcing today. Our confidence in this strategy is demonstrated by the new progressive and sustainable dividend policy we will operate going forward.”

• LV= reported a return to profitability in its 2023 results out today. The firm made £107m of profit before tax, compared with a loss before tax of £145m in 2022.