REG - Phoenix Group Hldgs - 2021 Bulk Purchase Annuity Transactions

Phoenix groupAnnouncement

11/01/2022 07:05

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RNS Number : 9956X  Phoenix Group Holdings PLC  11 January 2022

LEI: 2138001P49OLAEU33T68

 

Phoenix Group completes £4.0 billion of Bulk Purchase Annuity transactions in
H2 2021

 

Phoenix Group Holdings plc ("Phoenix Group" or "the Group") today announces
that it completed four Bulk Purchase Annuity (BPA) transactions during the
second half of 2021 covering £4.0 billion of premiums, comprising £3.6
billion of external deals and a further £0.4 billion tranche of the Group's
Pearl Pension Scheme.

 

This equates to total BPA premiums of £5.5 billion contracted for the year
(FY20: £2.5 billion). The capital strain for all BPA transactions written in
2021 is currently expected to be c.6.5% (FY20: 9%) and the cash multiple
c.2.6x (FY20: 2.3x), with the second half transaction economics reflective of
the current low credit spread environment.

 

This strong performance highlights Phoenix's success in driving organic
growth, and reflects the investment the Group is making into both its Open
business and internal asset management function. Phoenix is building a
market-leading BPA team and asset sourcing capability, which supports a
comprehensive BPA solutions offering that is now distributed to the market
under the Standard Life brand.

 

As a result, Phoenix Group now expects to deliver in excess of £1 billion of
total new business long-term cash generation for 2021, which will more than
offset the run-off of the in-force business (currently c.£0.8 billion of
annual cash generation).

 

Andy Briggs, CEO of Phoenix Group, commented:

 

"I am delighted with the progress we are making in building a market-leading
Bulk Purchase Annuity business which contracted £5.5 billion of premiums in
2021, more than double our 2020 premiums.

 

As a result, we have now delivered on our ambition for our new business cash
generation to more than offset the run-off of our Heritage business and have
"proven the wedge".

 

This reflects the investment we are making into our growing Open business and
the Standard Life brand, which supports us in delivering Phoenix's purpose of
helping people secure a life of possibilities."

 

Phoenix Group's Full Year 2021 Results will be announced on Monday 14(th)
March 2022.

 

 

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Enquiries

Investors/analysts:

Claire Hawkins, Director of Corporate Affairs, Phoenix Group

+44 (0)20 3735 0575

Andrew Downey, Investor Relations Director, Phoenix Group

+44 (0)20 3735 0160

Media:

Douglas Campbell, Teneo

+44 (0)775 313 6628

Shellie Wells, Corporate Communications Director, Phoenix Group

+44 (0)20 3735 0922

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Legal Disclaimers

This announcement in relation to Phoenix and its subsidiaries (the "Group")
contains forward-looking statements about the Group's current plans, goals and
expectations relating to future financial events, conditions, performance,
results, strategy and/or objectives. Statements containing the words:
'believes', 'intends', 'will', 'expects', 'may', 'should', 'plans', 'aims',
'seeks', 'continues', 'targets' and 'anticipates' or other words of similar
meaning are forward-looking. Such forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances that are
beyond the Group's control. As a result, such future events and the Group's
actual future financial condition, performance and results may differ
materially from the plans, goals and expectations set out in the
forward-looking statements in this announcement. The Group undertakes no
obligation to update any of the forward-looking statements contained within
this announcement.

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