Association of British Insurers – A trade association for the UK's insurance industry.


Asset Backed Securities – A collateralised security whose value and income payments are derived from a specified pool of underlying assets.


Annual General Meeting - A meeting which companies with shareholders are required by law to hold.


Asset Liability Management – Management of mismatches between assets and liabilities within risk appetite.

Annuity policy

Asset Liability Management – Management of mismatches between assets and liabilities within risk appetite.

Asset Management

The management of assets using a structured approach to guide the act of acquiring and disposing of assets, with the objective of meeting defined investment goals and maximising value for investors, including policyholders.


Actuarial Systems Transformation - A project set up to rationalise and streamline the Group's actuarial systems, models and processes into a single actuarial modelling platform that is state of the art, scalable and able to meet our future demands.


A mathematical model used to calculate the value of an option.


UK Companies Act 2006


The Committee of European Insurance and Occupational Pensions Supervisors – the Committee is composed of high level representatives from the insurance and occupational pensions supervisory authorities of European Union member states and is currently consulting with the industry on the technical requirements of Solvency II.

Closed Life Fund

A fund that no longer accepts new business. The fund continues to be managed for the existing policyholders.


Frictional Cost of Capital - The difference between the market value of shareholder-owned assets backing required capital and the present value of future releases of those assets allowing for future investment returns on that capital, investment expenses and taxes.

Combined Code / UK Code on Corporate Governance

Standards of good corporate governance practice in the UK relating to issues such as board composition and development, remuneration, accountability, audit and relations with shareholders. The current version of the UK Code is May 2010.

Corporate Governance

The framework of customs, policies, procedures, laws and institutions influencing the way a corporation or company is managed.


Discretionary Participation Feature – A contractual right under an insurance contract to receive, as a supplement to guaranteed benefits, additional benefits whose amount or timing is at the discretion of the issuer.


European Economic Area - Established on 1 January 1994 and is an agreement between Norway, Iceland, Liechtenstein and the European Union. It allows these countries to participate in the EU’s single market without joining the EU. EU European Union.


Financial Conduct Authority

Financial Reporting Council

The UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.


Financial Services Authority - From 1 April 2013 the responsibilities of the Financial Services Authority have been split into two bodies, the Financial Conduct Authority and the Prudential Regulation Authority.


Guaranteed Annuity Option/Rate - An option or rate available to certain pension policyholders to acquire an annuity at a contractually guaranteed conversion rate.


Guaranteed Cash Option – An option to convert an annuity benefit into cash on guaranteed terms.


Her Majesty's Revenue and Customs


International Financial Reporting Standards - Accounting standards, Interpretations and the Framework adopted by the International Accounting Standards Board.


Initial Public Offering


London Inter-Bank Offer Rate - Interest rate that banks charge each other for loans of varying short-term maturities.


London Stock Exchange


Long-Term Insurance Capital Component - Capital required to be held for regulatory purposes in respect of investment, expense and insurance risks.


Long-Term Insurance Capital Component - Capital required to be held for regulatory purposes in respect of investment, expense and insurance risks.


Market Consistent Embedded Value - A measure of the consolidated value of shareholders’ interests calculated using the Group’s MCEV methodology as described in the note 1 of the MCEV supplementary information.


Management Services Agreement – A contract that exists between Phoenix Life and management services or between management services and their outsourced services providers.


Open Ended Investment Companies - A type of company or a fund in the UK that is structured to invest in other companies with the ability to adjust constantly its investment criteria and fund size.


Principles and Practices of Financial Management - An FCA requirement to produce a publicly available account of how a company’s with profits business is run to ensure customers are treated fairly.


Prudential Regulation Authority

Premium Listing

From 6 April 2010 a Premium Listing replaces the pre-existing Primary Listing on the London Stock Exchange. Under a Premium Listing companies are required to comply with “premium” or “super-equivalent” standards.


Retail Price Index excluding mortgage interest payments – Official measure of the general level of inflation as reflected in the retail price of goods and services.

Solvency II

A fundamental review of the capital adequacy regime for the European insurance industry. Solvency II aims to establish a set of EU-wide capital requirements and risk management standards that will replace the current Solvency I requirements.


A Special Purpose Acquisition Company is a company set up with the express purpose of acquiring other businesses.


Treating Customers Fairly - A central FSA principal that aims to ensure an efficient and effective market and thereby help policyholders achieve a fair deal.


Total Shareholder Return – The total return of a stock to an investor (capital gain plus dividends).


Useful Economic Life - The period over which fixed assets are depreciated.


UK Commercial Property Trust Limited - A property subsidiary of the Group which is domiciled in Guernsey and listed on the London Stock Exchange.


UK Listing Authority - The FSA acting as the competent authority for listing, is referred to as the UKLA, and maintains the official list.


Generally Accepted Accounting Principles adopted within the UK.


World Wide Fund for Nature