REG - Phoenix Grp Hldgs - Phoenix Group Holdings - 2014 Annual Results <Origin Href="QuoteRef">PHNX.L</Origin> - Part 19

Phoenix groupAnnouncement

18/03/2015 07:01

- Part 19: For the preceding part double click  ID:nRSR7166Hr 

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                                                                                                                                                                           
 AST                                                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                                                                                                                                                  
 BLACK-SCHOLES                                      A mathematical model used to calculate the value of an option                                                                                                                                                                                                                                                                                                                                            
 CFO FORUM                                          A high-level discussion group formed of the Chief Financial Officers of major European insurance companies. Its aim is to influence the development of financial reporting and related regulatory developments for insurance companies on behalf of its members                                                                                                                                          
 CLOSED LIFE FUND                                   A fund that no longer accepts new business. The fund continues to be managed for the existing policyholders                                                                                                                                                                                                                                                                                              
 COC                                                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                                                                                                                                 
 CNHR                                               Cost of residual non-hedgeable risk - The expected cost of non-hedgeable risks that can have an asymmetric impact on shareholder value to the extent these risks have not already been reflected in the present value of future profits or time value of financial options and guarantees within the MCEV                                                                                                
 DPF                                                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 contractually at the discretion of the issuer                                                                                                                                                                    
 EBT                                                Employee Benefit Trust - A trust set up to enable its Trustee to purchase and hold shares to satisfy employee share-based incentive plan awards. The Company's EBT is the Phoenix Group Holdings Employee Benefit Trust                                                                                                                                                                                  
 ECONOMIC ASSUMPTIONS                               Assumptions related to future interest rates, inflation, market value movements and tax                                                                                                                                                                                                                                                                                                                  
 EEA                                                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                                                                                                                                                                      
 EURONEXT                                           A pan-European Stock Exchange based in Amsterdam, Holland                                                                                                                                                                                                                                                                                                                                                
 EMBEDDED VALUE                                     The value to equity shareholders of the net assets and expected future profits of a life company                                                                                                                                                                                                                                                                                                         
 EXPERIENCE VARIANCES                               Current period differences between the actual experience incurred and the assumptions used in the calculation of MCEV or IFRS insurance liabilities                                                                                                                                                                                                                                                      
 Financial Leverage                                 Gross shareholder debt (financial leverage basis) as a percentage of the gross MCEV                                                                                                                                                                                                                                                                                                                      
 FINANCIAL REPORTING COUNCIL                        The UK's independent regulator responsible for promoting high quality corporate governance and reporting to foster investment                                                                                                                                                                                                                                                                            
 FREE SURPLUS                                       The amount of capital held in life companies in excess of that needed to support their minimum regulatory capital requirement, which is the greater of Pillar 1 and Pillar 2 capital requirements, plus the capital required under the Group's capital management policy                                                                                                                                 
 FCA                                                Financial Conduct Authority - The body responsible for supervising the conduct of all financial services firms and for the prudential regulation of those financial services firms not supervised by the Prudential Regulation Authority ('PRA'), such as asset managers and independent financial advisers                                                                                              
 GAR                                                Guaranteed Annuity Rate - A rate available to certain pension policyholders to acquire an annuity at a contractually guaranteed conversion rate                                                                                                                                                                                                                                                          
 GEARING                                            Gross shareholder debt (gearing basis) as a percentage of the gross MCEV                                                                                                                                                                                                                                                                                                                                 
 GROSS MCEV                                         Gross MCEV is the sum of the Group MCEV and the value of the shareholder and hybrid debt as included in the MCEV                                                                                                                                                                                                                                                                                         
 gross shareholder debt (financial leverage basis)  Gross shareholder debt (financial leverage basis) is defined as the sum of the notional face value of shareholder debt and 100% of the face value of the Tier 1 notes.                                                                                                                                                                                                                                   
 GROSS SHAREHOLDER DEBT (GEARING BASIS)             Gross shareholder debt (gearing basis) is defined as the sum of the IFRS carrying value of shareholder debt (as disclosed in the Borrowings note in the IFRS financial statements) and 50% of the IFRS carrying value of the Tier 1 Notes given the hybrid nature of that instrument                                                                                                                     
 HMRC                                               Her Majesty's Revenue and Customs                                                                                                                                                                                                                                                                                                                                                                        
 HOLDING COMPANIES                                  Refers to Phoenix Group Holdings, PGH Capital Limited, Phoenix Life Holdings Limited, Pearl Group Holdings (No. 2) Limited, Impala Holdings Limited, Pearl Group Holdings (No. 1) Limited, PGH (TC1) Limited, PGH (TC2) Limited, PGH (MC1) Limited, PGH (MC2) Limited, PGH (LCA) Limited, PGH (LCB) Limited, PGH (LC1) Limited, PGH (LC2) Limited and Pearl Life Holdings Limited                        
 ICA                                                Individual Capital Assessment - A life company's Pillar 2 assessment of its capital requirements to ensure that assets exceed liabilities 99.5% of the time over a 1-year period or (in other words) to be able to withstand a 1 in 200 year event                                                                                                                                                       
 IFRS                                               International Financial Reporting Standards - Accounting standards, interpretations and the framework adopted by the International Accounting Standards Board                                                                                                                                                                                                                                            
 IGD                                                Insurance Groups Directive - The European Directive setting out the current capital adequacy regime for insurance groups as implemented by the PRA                                                                                                                                                                                                                                                       
 IMC                                                Investment Management Contract - A contract between an investor and an investment manager                                                                                                                                                                                                                                                                                                                
 INCREMENTAL EMBEDDED VALUE                         Enhancement of MCEV through management actions                                                                                                                                                                                                                                                                                                                                                           
 IN-FORCE                                           Long-term business written before the period end and which has not terminated before the period end                                                                                                                                                                                                                                                                                                      
 INHERITED ESTATE                                   The assets of the long-term with-profit funds less the realistic reserves for non-profit policies written into the non-profit fund, less asset shares aggregated across the with-profit policies and any additional amounts expected at the valuation date to be paid to in-force policyholders in the future in respect of smoothing costs and guarantees                                               
 LIBOR                                              London Interbank Offer Rate - The average interbank interest rate at which a selection                                                                                                                                                                                                                                                                                                                   
                                                    of banks on the London money market are prepared to lend to one another                                                                                                                                                                                                                                                                                                                                  
 LSE                                                London Stock Exchange                                                                                                                                                                                                                                                                                                                                                                                    
 LTIP                                               Long-Term Incentive Plan - The part of an executive's remuneration designed to incentivise long-term value for shareholders through an award of shares with vesting contingent on employment and the satisfaction of stretching performance conditions linked to Group strategy                                                                                                                          
 MCEV                                               Market Consistent Embedded Value - A measure of the consolidated value of shareholders' interests calculated using the Group's MCEV methodology as described in the Basis of preparation section of the MCEV supplementary information                                                                                                                                                                   
 MSA                                                Management Services Agreement - Contracts that exist between Phoenix Life and management services companies or between management services companies and their outsource partners                                                                                                                                                                                                                        
 NET SHAREHOLDER DEBT                               Shareholder debt (including the Tier 1 Notes) less holding company cash and cash equivalents                                                                                                                                                                                                                                                                                                             
 NON-ECONOMIC ASSUMPTIONS                           Assumptions related to future levels of mortality, morbidity, persistency and expenses                                                                                                                                                                                                                                                                                                                   
 NON-PROFIT FUND                                    A fund which is not a with-profit fund (see page 232), where risks and rewards of the fund fall wholly to shareholders                                                                                                                                                                                                                                                                                   
 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 its investment criteria and fund size                                                                                                                                                                                                                                                   
 OPERATING COMPANIES                                Refers to the