Despite the uncertain economic backdrop, we are confident about the outlook for Phoenix’s growth. Our focused strategy is designed to leverage the major trends in the UK long-term savings and retirement market, across M&A, BPA, Workplace and Individual Pensions & Savings. These offer Phoenix multiple, long-term structural growth opportunities.
“Phoenix has performed very strongly in the first half of the year despite the challenging macro environment. We have once again delivered a record set of financial results, which was underpinned by the strong progress we have made across our strategic priorities. We have delivered strong cash generation of £950 million and maintained our resilient balance sheet. We have also delivered both organic growth, with £430 million of new business from our Open business, and inorganic growth, with the announcement of our £248 million acquisition of Sun Life of Canada UK. Our 2022 Interim dividend has increased 3% year-on-year, and we have proposed a further 2.5% increase at our 2022 Final dividend to reflect the value we expect to create with the Sun Life of Canada UK acquisition.
We have been working tirelessly to ensure we can support our customers and colleagues impacted by the increased cost of living - building on our programme of activities for our most vulnerable customers and offering a range of support to our colleagues including a one-off payment. As the UK’s largest long-term savings and retirement business, we are driven by our core social purpose.”
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Investors/analysts:
Claire Hawkins, Director of Corporate Affairs, Phoenix Group
+44 (0)20 4559 3161
Andrew Downey, Investor Relations Director, Phoenix Group
+44 (0)20 4559 3145
Media:
Douglas Campbell, Teneo
+44 (0)775 313 6628
Shellie Wells, Corporate Communications Director, Phoenix Group
+44 (0)20 4559 3031
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There will be a live virtual presentation for analysts and investors today starting at 09:30 (BST).
A link to the live webcast of the presentation, with the facility to raise questions, as well as a copy of the presentation and a detailed financial supplement will be available at:
Investor Relations: Results, Reports and Presentations
You can also register for the live webcast at: Phoenix Group 2022 half year results
A replay of the presentation and transcript will also be available on our website following the event.
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The declared Interim dividend of 24.8p per share is expected to be paid on 12 September 2022.
The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 25 August 2022. The record date for eligibility for payment will be 26 August 2022.
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1. Cash generation is a measure of cash and cash equivalents, remitted by Phoenix Group’s operating subsidiaries to the holding companies and is available to cover dividends, debt interest, debt repayments and other items.
2. 30 June 2022 Solvency II capital position is an estimated position and reflects a dynamic recalculation of transitionals for the Group’s Life companies and recognition of the foreseeable 2022 interim shareholder dividend of £248m. Had the dynamic recalculation not been assumed, the Solvency II surplus and the Shareholder Capital Coverage Ratio would increase by £0.4bn and 10% respectively.
3. The Shareholder Capital Coverage Ratio excludes Solvency II Own Funds and Solvency Capital Requirements of unsupported with-profit funds and unsupported pension schemes.
4. Current Fitch leverage ratio is estimated by management. Leverage ratio is pro forma for a £450m debt repayment made in July and allowing for currency hedges over foreign currency denominated debt.
5. Includes known hires and subject to regulatory approval.
6. £1,000 net payment to be made in August to all permanent colleagues excluding our Top 100 leaders.
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This announcement in relation to Phoenix Group Holdings plc and its subsidiaries (the ‘Group’) contains, and the Group may make other statements (verbal or otherwise) containing, forward-looking statements and other financial and/or statistical data about the Group’s current plans, goals, ambitions, outlook, guidance and expectations relating to future financial condition, performance, results, strategy and/or objectives.
Statements containing the words: ‘believes’, ‘intends’, ‘will’, ‘may’, ‘should’, ‘expects’, ‘plans’, ‘aims’, ‘seeks’, ‘targets’, ‘continues’ and ‘anticipates’ or other words of similar meaning are forward looking. Such forward-looking statements and other financial and/or statistical data involve risk and uncertainty because they relate to future events and circumstances that are beyond the Group’s control. For example, certain insurance risk disclosures are dependent on the Group’s choices about assumptions and models, which by their nature are estimates. As such, actual future gains and losses could differ materially from those that the Group has estimated.
Other factors which could cause actual results to differ materially from those estimated by forward-looking statements include, but are not limited to: domestic and global economic, social, environmental and business conditions; asset prices; market related risks such as fluctuations in interest rates and exchange rates, the potential for a sustained low-interest rate environment, and the performance of financial markets generally; the policies and actions of governmental and/or regulatory authorities, including, for example, initiatives related to the financial crisis, the COVID-19 pandemic, climate change and the effect of the UK’s version of the "Solvency II” requirements on the Group’s capital maintenance requirements; the impact of inflation and deflation; the political, legal, social and economic effects of the COVID-19 pandemic and the UK’s exit from the European Union; the direct and indirect consequences of the Russia-Ukraine War on European and global macroeconomic conditions; information technology or data security breaches (including the Group being subject to cyberattacks); the development of standards and interpretations including evolving practices in ESG and climate reporting with regard to the interpretation and application of accounting; the limitation of climate scenario analysis and the models that analyse them; lack of transparency and comparability of climate-related forward-looking methodologies; climate change and a transition to a low-carbon economy (including the risk that the Group may not achieve its targets); market competition; changes in assumptions in pricing and reserving for insurance business (particularly with regard to mortality and morbidity trends, gender pricing and lapse rates); the timing, impact and other uncertainties of proposed or future acquisitions, disposals or combinations within relevant industries; risks associated with arrangements with third parties; inability of reinsurers to meet obligations or unavailability of reinsurance coverage; the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which members of the Group operate.
As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals, ambitions, outlook, guidance and expectations set out in the forward-looking statements and other financial and/or statistical data within this announcement. The Group undertakes no obligation to update any of the forward-looking statements or data contained within this announcement or any other forward-looking statements or data it may make or publish. Nothing in this announcement constitutes, nor should it be construed as, a profit forecast or estimate.