TIDMPHNX
RNS Number : 1625T
Phoenix Group Holdings PLC
13 November 2023
LEI: 2138001P49OLAEU33T68
This announcement constitutes inside information as stipulated
under the UK version of the Market Abuse Regulation no 596/2014
which is part of English law by virtue of the European (withdrawal)
act 2018, as amended.
Phoenix Group upgrades near-term cash generation targets on
completion of funds merger through a Part VII transfer
-- Funds merger through a Part VII transfer of Standard Life and
Phoenix Life businesses into a single entity completed
-- Leads to a material one-off upgrade to the Group's 2023 cash
generation target from GBP1.3-to-1.4bn to c.GBP1.8bn; the Group's
three-year cash generation target consequently increases from
GBP4.1bn to GBP4.5bn across 2023-2025
-- Increased cash generation targets create further balance sheet optionality for the Group
Commenting on the announcement, Phoenix Group CEO, Andy Briggs
said:
"The completion of the funds merger of the Standard Life and
Phoenix Life businesses into Phoenix Life Limited, bringing
together 8 million policies, is one of the largest UK insurance
Part VII transfers ever completed. This reaffirms Phoenix Group's
position as the UK's leader at delivering cost and capital
synergies and generating value for customers and shareholders. This
funds merger enables us to materially upgrade our cash generation
targets and creates further balance sheet optionality for the
Group."
Phoenix Group Holdings plc ("Phoenix Group" or the "Group")
today announces that it has completed the Part VII transfer of its
Standard Life(1) and Phoenix Life Assurance Limited businesses into
Phoenix Life Limited. This is one of the largest UK insurance Part
VII transfers ever completed, bringing together the businesses of 4
legal entities, comprising c.8 million policies and c.GBP200
billion(2) of assets into a single entity.
Executing our strategic priorities strengthens our competitive
advantages of capital efficiency, customer access, and cost
efficiency. Our strategic priority of 'enhancing our operating
model and culture' is designed to support us in delivering leading
cost efficiency and a modern organisation. The completion of these
transfers marks the successful execution of a key action in support
of this priority and supports our ambition of delivering a single
best way of doing things for our customers.
The Part VII transfer creates additional free surplus within our
life companies through the realisation of the diversification
benefit associated with our internal model harmonisation management
action completed in 2021, which enables the Group to announce the
one-off upgrade of its near-term cash generation targets today.
The Group therefore now expects to deliver c.GBP1.8 billion of
cash generation in 2023, a significant increase relative to our
previous target range of GBP1.3-to-GBP1.4 billion. Consequently,
the Group's three-year cash generation target across 2023-2025 is
also increased to GBP4.5 billion, up from GBP4.1 billion
previously.
As a result, the Group expects to have significant surplus cash
at its holding company at the end of 2023, which creates further
balance sheet optionality.
Phoenix Group looks forward to presenting an evolved financial
framework with enhanced disclosures and an update on capital
allocation in the near term, alongside its Full Year 2023 results
announcement in March 2024.
The person responsible for arranging for the release of this
announcement on behalf of Phoenix Group is Kulbinder Dosanjh, Group
Company Secretary.
Enquiries
Investors/analysts:
Claire Hawkins , Director of Corporate Affairs and Investor
Relations, 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)7753 136 628
Shellie Wells , Corporate Communications Director, Phoenix
Group
+44 (0) 20 4559 3031
Footnotes
(1) Standard Life refers to Standard Life Assurance Limited and
Standard Life Pension Funds Limited.
2 Year end 2022 values
Legal Disclaimers
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,
political, social, environmental and business conditions; asset
prices; market related risks such as fluctuations in investment
yields, interest rates and exchange rates, the potential for a
sustained low-interest rate or high-interest rate, environment, and
the performance of financial or credit 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" regulations on the Group's
capital maintenance requirements; the impact of changing inflation
rates (including high inflation) and/or deflation; the medium and
long-term 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 European and global
macroeconomic conditions of the Russia-Ukraine War and related or
other geopolitical conflicts; 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, and
implementing changes in IFRS 17 or any other regulatory solvency
and/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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFFFIILFLFLIV
(END) Dow Jones Newswires
November 13, 2023 02:00 ET (07:00 GMT)
Phoenix (LSE:PHNX)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Phoenix (LSE:PHNX)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024