Britain39;s financial watchdog examining pure protection insurance
Shares fell 2.8 as SunLife news overshadowed strong results
Phoenix39;s H1 cash generation and profit surpassed expectations

Sept 16 Reuters British insurer Phoenix Group has stopped the sale process of its SunLife business, it said on Monday, citing regulatory scrutiny into what is known as the pure protection insurance market, sending its shares lower.

Phoenix39;s pure protection products are designed to help policyholders manage their finances if they become unable to meet financial commitments. It distributes them through the SunLife brand, which earns commission.

Britain39;s financial watchdog in August launched a market study into sales of pure protection insurance products following concern the design of some commission structures could lead to poor outcomes for policyholders.

The uncertainty around commission was a concern for potential purchasers, CEO Andy Briggs told Reuters.

A sale of the SunLife brand would have split the manufacturing and the distribution of the products, Briggs said, raising concerns about lower commissions to SunLife.

Shares fell 2.8 in early trade as the SunLife news overshadowed Phoenix39;s firsthalf earnings and total cash that surpassed market expectations on pensions and savings business growth.

Phoenix reported total cash generation of 950 million pounds 1.25 billion in the six months to June 30, surpassing expectations of about 739 million pounds in a…