Insurance firm Phoenix Group has scrapped the sale of its SunLife business, which sells equity release products, due to “current uncertainty in the protection market”.

Phoenix had put SunLife, which also offers over 50s life insurance and inheritance plan products, on the block in June saying that it “is no longer core” to the group.

However, it now says that the “board has decided to discontinue the sale process and will focus on enhancing the value it generates within the group,” in a first-half stock market statement today.

The group posted a pre-tax loss of £646m up from £245m a year ago, primarily due to higher interest rates and global equities as a result of its hedging approach.

Its operating profit lifted 15% to £360m driven by growth in its pensions and savings and retirement units.

Phoenix Group chief executive Andy Briggs says: “Strong growth in our capital-light pensions and savings business in particular has supported a 15% increase in operating profit.”