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March 20 (Reuters) - Phoenix Group Holdings, Britain's largest owner of life assurance funds closed to new customers, raised its long-term cash generation target due to benefits of acquisitions made last year.
The life insurer, which makes money by buying European life insurers that are closed to new customers and running them more efficiently, said it now expected to generate 2.8 billion pounds ($3.5 billion) of cash between 2016 and 2020, up from an earlier target of 2.0 billion pounds.
Phoenix, which bought British assets from French insurer AXA and Deutsche Bank AG last year, said 1 billion to 1.2 billion pounds of this cash would be generated between 2017 and 2018.
"We believe there will be further consolidation in the UK life industry. We continue to explore opportunities as they arise," Chief Executive Clive Bannister said in a statement. ($1 = 0.8057 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri)