Retirement and insurance firm Phoenix Group, owner of Standard Life, has scrapped plans to sell its over-50s insurance specialist Sun Life.

It said it had decided to halt the sale, first revealed in June, “given the current uncertainty in the protection market.”

In a Stock Exchange statement today it said: “Phoenix will now explore ways of enhancing the value Sun Life generates within the group.”

Phoenix paid £375m for Sun Life in 2016.

The news was revealed in Phoenix’s half year results today. The company reported a 15% rise in underlying operating profits to £360m, although it also revealed a post-tax loss of £646m for the six month period to the end of June.

Phoenix Group CEO Andy Briggs said: “Phoenix’s vision is to be the UK’s leading retirement savings and income business.”

He said: “Strong growth in our capital-light pensions and savings business in particular has supported a 15% increase in operating profit.”

Pensions and savings made £149m in the half year while the company’s retirement solutions business contributed £210m. Despite this the business posted a £646m loss after tax which it said was down to “£698m of adverse economic variances from higher interest rates and global equities.”

Phoenix said that it was on track to deliver around £50m of cost savings by the end of 2024 under its “business simplification” programme.

Phoenix has £289bn of assets under management and around 12m customers.

Andy Curran, CEO of its Standard Life subsidiary, said Standard Life’s workplace business delivered 83% growth in net fund flows to £3.3bn as the business retained existing customers and won new schemes.

He said: “Our Master Trust in particular is growing strongly and assets exceeded £10bn for the first time earlier this year.”

In August, Phoenix Group announced an agreement with Schroders to launch Future Growth Capital, a private market investment manager set up to promote the objectives of the Mansion House Compact in the UK. It will provide Standard Life policyholders with access to a broader range of assets.

In the bulk purchase annuity market, £1.7bn of annuity premiums were written in the six month period with a strong pipeline of opportunities in place, according to Mr Curran.

He said: “Another major focus for us has been on broadening our retirement offer and in particular creating solutions that provide people with greater certainty of income in retirement.”