REG - Phoenix Grp Hldgs - 2017 Interim Results <Origin Href="QuoteRef">PHNX.L</Origin> - Part 6
24/08/2017 07:06
- Part 6: For the preceding part double click ID:nRSX8386Oe
729 488 551 108 1,876
USA 10 8 4 1 23
Germany - 74 29 - 103
France - 29 - - 29
Netherlands 9 84 32 1 126
Ireland 30 1 18 - 49
Other - non-Eurozone 78 2 7 3 90
Other - Eurozone - 3 - 3 6
At 31 December 2016 856 689 641 116 2,302
The following table sets out the credit rating analysis of the debt
portfolio:
30 June 2017
Credit rating analysis of debt portfolio Shareholder and Participating supported Participating non-supported Unit-linked Total
non-profit funds £m £m £m £m
£m
AAA 1,359 911 1,570 589 4,429
AA 4,517 892 7,507 1,322 14,238
A 3,504 328 1,317 631 5,780
BBB 2,190 33 1,712 291 4,226
BB 86 2 201 36 325
B and below 48 1 124 14 187
Non-rated 158 69 404 2,187 2,818
At 30 June 2017 11,862 2,236 12,835 5,070 32,003
31 December 2016
Credit rating analysis of debt portfolio Shareholder and non-profit funds £m Participating supported Participating Unit-linked Total
£m non-supported £m £m
£m
AAA 1,333 935 1,626 519 4,413
AA 4,578 943 7,962 1,415 14,898
A 3,358 287 1,312 550 5,507
BBB 2,274 54 1,624 360 4,312
BB 132 4 167 47 350
B and below 16 2 117 11 146
Non-rated 75 78 343 2,187 2,683
At 31 December 2016 11,766 2,303 13,151 5,089 32,309
CAPITAL DISCLOSURES
ADDITIONAL CAPITAL DISCLOSURES
The Group's capital management framework is described in the Business Review
section on pages 8 to 14 of the Interim Report.
As described in the Capital Management section of the Business Review, pending
simplification of the Group's structure, Solvency II capital assessment and
the Group's regulatory supervision is now performed at both the PGH and the
PLHL level. The Group's capital position is being managed at the PGH level,
being the more onerous calculation. This section provides additional analysis
of PGH's Solvency II Own Funds, SCR and MCR.
PGH Solvency II surplus
PGH's pro forma Solvency II surplus at 30 June 2017 is £1.7 billion (31
December 2016: £1.1 billion). The rationale for the use of the pro forma
metric is set out on page 10.
30 June 31 December 2016
2017 Pro forma
Pro forma £bn
£bn
Own Funds 6.5 6.0
SCR (4.8) (4.9)
Surplus 1.7 1.1
Composition of own funds
Own Funds items are classified into different Tiers based on the features of
the specific items and the extent to which they possess the following
characteristics:
- availability to be called up on demand to fully absorb losses on a
going-concern basis, as well as in the case of winding-up ('permanent
availability');
- in the case of winding-up, the total amount that is available to absorb
loses before repayment to the holder until all obligations to policyholders
and other beneficiaries have been met ('subordination').
PGH's pro forma Own Funds are analysed by Tier as follows:
30 June 31 December 2016
2017 Pro forma
Pro forma £bn
£bn
Tier 1 4.9 5.0
Tier 2 1.0 0.6
Tier 3 0.6 0.4
Total Own Funds 6.5 6.0
PGH's Tier 1 capital accounts for 75% (31 December 2016: 83%) of total Own
Funds and comprises of ordinary share capital, surplus funds of the
unsupported with-profit funds which are recognised only to a maximum of the
SCR, and the accumulated profits of the remaining business.
Tier 2 capital comprises of subordinated notes whose terms enable them to
qualify as Tier 2 capital for regulatory reporting purposes. The 30 June 2017
position includes a pro forma adjustment for the £0.4 billion of Tier 2 bonds
issued in July 2017.
Tier 3 items include the £0.3 billion Tier 3 bond issued in January 2017, the
additional Tier 3 bond issuance in May 2017 of £0.2 billion (31 December 2016:
£0.3 billion, pro forma for the January 2017 issuance) and the deferred tax
asset of £0.1 billion (31 December 2016: £0.1 billion).
Breakdown of SCR
An analysis of the undiversified SCR of PGH (shareholder view) is presented
below:
30 June 31 December 2016
2017 Pro forma
Pro forma %
%
Longevity 31 33
Credit 15 16
Persistency 12 13
Interest rates 7 9
Operational 8 7
Swap spreads 4 4
Other market risks 14 10
Other non-market risks 9 8
100% 100%
Minimum Capital Requirements
Minimum Group Solvency Capital Requirement ('MCR') is the minimum amount of
capital an insurer is required to hold below which policyholders and
beneficiaries would become exposed to an unacceptable level of risk if an
insurer was allowed to continue its operations.
The MCR is calculated according to a formula prescribed by the Solvency II
regulations and is subject to a floor of 25% of the SCR or EUR 3.7 million,
whichever is higher, and a cap of 45% of the SCR. The MCR formula is based on
factors applied to technical provisions and capital at risk.
PGH's MCR at 30 June 2017 is £1.2 billion (31 December 2016: £1.3 billion)
which is the sum of the underlying insurance companies' MCRs.
PGH's Eligible Own Funds to cover MCR is £5.1 billion (31 December 2016: £5.2
billion) leaving an excess of Eligible Own Funds over MCR of £3.9 billion (31
December 2016: £4.0 billion), which translates to an MCR coverage ratio of
430% (31 December 2016: 409%).
The Eligible Own Funds to cover the MCR is subject to quantitative limits as
shown below:
- the eligible amounts of Tier 1 items should be at least 80% of the MCR;
and
- the eligible amounts of Tier 2 items shall not exceed 20% of the MCR.
30 June 31 December 2016
2017 Pro forma
Pro forma £bn
£bn
Eligible Own Funds to cover MCR
Tier 1 4.9 5.0
Tier 2 0.2 0.2
Total Eligible Own Funds to cover MCR 5.1 5.2
Additional Information
SHAREHOLDER INFORMATION
ANNUAL GENERAL MEETING
Our Annual General Meeting ('AGM') was held on 11 May 2017 at 12.30pm (BST).
The voting results for our 2017 AGM, including proxy votes and votes withheld
are available on our website at www.thephoenixgroup.com
SHAREHOLDER SERVICES
MANAGING YOUR SHAREHOLDING
Our registrar, Computershare, maintains the Company's register of members.
Shareholders may request a hard copy of this Interim Report from our registrar
and if you have any further queries in respect of your shareholding, please
contact them directly using the contact details set out below.
REGISTRAR DETAILS
Computershare Investor Services (Cayman) Limited
Queensway House
Hilgrove Street
St Helier
Jersey, JE1 1ES
Shareholder helpline number: +44 (0) 370 702 0000
Fax number: +44 (0) 370 703 6101
Shareholder helpline email address: info@computershare.co.je
SHARE PRICE
You can access the current share price of Phoenix Group Holdings at
www.thephoenixgroup.com
GROUP FINANCIAL CALENDAR FOR 2017
Announcement of unaudited six months' Interim Results 24 August 2017
2017 INTERIM DIVIDEND
Ex-dividend date 7 September 2017
Record date 8 September 2017
Interim 2017 dividend payment date 2 October 2017
2017 ANNUAL RESULTS
Our financial results for the year ended 31 December 2017 will be announced on
15 March 2018.
FORWARD-LOOKING STATEMENTS
The 2017 Interim Report 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 and
expectations relating to future financial conditions, 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 we have 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 and business conditions;
- asset prices;
- market-related risks such as fluctuations in interest rates and
exchange rates, the potential for a sustained low-interest environment, and
the performance of financial markets generally;
- the policies and actions of governmental and/or regulatory authorities,
including, for example, new government initiatives related to the financial
crisis and effect of the European Union's 'Solvency II' requirements on the
Group's capital maintenance requirements;
- the political, legal and economic effects of the UK's vote to leave the
European Union;
- the impact of inflation and deflation;
- 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 future acquisitions or
combinations within relevant industries;
- risks associated with arrangements with third parties;
- inability of reinsurers to meet obligations or unavailability of
reinsurance coverage; and
- 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 and expectations set out
in the forward-looking statements within the 2017 Interim Report.
The Group undertakes no obligation to update any of the forward-looking
statements contained within the 2017 Interim Report or any other
forward-looking statements it may make or publish.
The 2017 Interim Report has been prepared for the members of the Company and
no one else. The Company, its Directors or agents do not accept or assume
responsibility to any other person in connection with this document and any
such responsibility or liability is expressly disclaimed.
Nothing in the 2017 Interim Report is or should be construed as a profit
forecast or estimate.
Online resources
REDUCING OUR ENVIRONMENTAL IMPACT
In line with our Corporate Responsibility programme, and as part of our desire
to reduce our environmental impact, you can view key information on our
website.
INVESTOR RELATIONS
Our Investor Relations section includes information such as our most recent
news and announcements, results presentations, annual and interim reports,
share-price performance, AGM and EGM information, UK Regulatory Returns and
contact information.
NEWS AND UPDATES
To stay up-to-date with Phoenix Group news and other changes to our site's
content, you can sign up for e-mail alerts, which will notify you when content
is added.
Phoenix group holdings
Registered address
Phoenix Group Holdings
Po Box 309
Ugland House
Grand Cayman Ky1-1104
Cayman Islands
Cayman Islands Registrar of Companies Number 202172
Principal Place of business
Phoenix Group Holdings
1st Floor
32 Commercial Street
St Helier JE2 3RU
Jersey
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Phoenix group
See all newsREG - Phoenix Group Hldgs - Block listing Return
AnnouncementREG - Phoenix Group Hldgs - Director/PDMR Shareholding
AnnouncementREG - Leeds Building Soc - Directorate change
AnnouncementREG - Phoenix Group Hldgs - Total Voting Rights
AnnouncementREG - Stock Exch Notice - Admission to Trading - 28/11/2025
Announcement