Last updated 1 September 2016 MEDIA FACTSHEET PHOENIX GROUP Phoenix Group Holdings has a Premium Listing on the London Stock Exchange and is a member of the FTSE 250 index. The Group is a closed life assurance fund consolidator that specialises in the management and acquisition of closed life and pension funds, and operates primarily in the United Kingdom. The Group has over 4.7 million * policyholders and assets of 47 billion *. The Group s core business segment: life assurance (including its management services operations) is referred to as 'Phoenix Life'. The Group has two operating life companies which hold policyholder assets. Our mission To improve returns for Phoenix policyholders and deliver value for shareholders. Our vision To be recognised as the industry solution for the safe, innovative and profitable decommissioning of closed life funds. *As at 31/12/2015 PHOENIX GROUP CUSTOMER FACING LIFE COMPANIES The Group includes: Phoenix Life Limited Phoenix Life Assurance Limited 1
WHAT WE DO How we create value We create value for our customers by maximising policyholder returns through our specialist expertise and innovative management of closed life funds. We create value for our shareholders by generating profits from the growth of our funds and releasing excess capital as dividends. How we manage risk We operate a comprehensive risk management framework which identifies, assesses and mitigates the risks facing the Group. How we govern our business We operate a robust governance structure embedded in an experienced management team, with independent Boards and Committees for the Group. FOUR AREAS OF STRATEGIC FOCUS Drive value: In order to drive value, the Group looks to undertake management actions which reduce costs, release capital, accelerate cash flows or enhance economic value. Manage capital: The effective management of our risks and the efficient allocation of capital against them is critical in allowing us to achieve our strategic and operational objectives. Engage people: Our people underpin everything that we do. The Group specifically targets, recruits and develops top quality people to support the achievement of its strategic and operational objectives. Improve customer outcomes: Improving customer outcomes is central to our vision of being the saver friendly industry solution for closed life funds. 2
FULL YEAR 2015 FINANCIAL HIGHLIGHTS Operating companies cash generation - 225 million (31 Dec 2014: 567 million) With cash generation of 225 million, the Group met its full year cash generation target for 2015 of 200 million to 250 million. Cash remitted reflects free surplus within the life companies and the benefit of management actions implemented in the period. The reduction from the prior period reflects the retention of capital in the life companies in advance of the transition to the new Solvency II capital regime. Dividend per share - 53.4 pence per share (31 Dec 2014: 53.4 pence per share) The Board has recommended a final dividend of 26.7p per share, bringing the total dividend for the year to 53.4p per share. The final dividend is due to be paid on 13 May 2016, subject to shareholder approval at the Company s AGM Group IFRS operating profit - 324 million (31 Dec 2014: 483 million) Group IFRS operating profit has decreased by 159 million to 324 million principally due to the lower impact of management actions compared to the previous period. Solvency II Surplus - 1.3 billion Our opening Solvency II surplus of 1.3 billion represents a robust and resilient capital position. Group MCEV - 2,513 million (31 Dec 2014: 2,647 million) With cumulative incremental embedded value from management actions of 466 million, the Group has exceeded the cumulative incremental embedded value target of 400 million from 2014 2016. The reduction of Group MCEV from the prior period primarily reflects dividend and financing costs, the adverse impacts of economic conditions and changes in asset portfolios ahead of Solvency II implementation, partly offset by management actions. 3
POLICYHOLDER SPLIT As at 31 December 2015 there were just over 4.7 million policies in force across the Group. This figure includes: Over 2 million whole-of-life and endowment policies 1.7 million pensions Nearly 400,000 annuities in payment Over 250,000 pure protection policies (term assurances, critical illness and income protection) Over 200,000 investment bonds Split across: 2 million Non-Profits policies. (This includes policies which were originally With-Profits but which have been paid-up and no longer receive bonuses) Over 900,000 Traditional With-Profits policies Over 900,000 Unit Linked and Index Linked policies Over 900,000 Unitised With Profits policies A BRIEF HISTORY OF THE GROUP The following shows the Group s original entities, their various acquisitions and key achievements over the years: 1782 Phoenix Assurance established 1806 London Life established 1835 NPI established 1836 Edinburgh & Glasgow Assurance established 1837 Scottish Provident established 1857 Pearl Loan Company established 1905 Britannic Assurance Company established 1996 Royal & Sun Alliance established 1999 Britannic acquires Alba Life 2001 Abbey National acquires Scottish Provident 2004 Resolution Life Group acquires UK life operations of Royal & Sun Alliance Britannic acquires life operations of Allianz Cornhill 2005 Pearl Group created Resolution Life Group acquires Swiss Life (UK) plc Britannic acquires Century Group and merges with Resolution Life Group to form Resolution plc 2006 Resolution plc acquires Abbey National s life business 2008 Pearl Group acquires Resolution plc 2009 Liberty Acquisition Holdings (International) acquires Pearl Group 2010 Pearl Group renamed Phoenix Group Holdings and achieves Premium Listing on London Stock Exchange 4
2012 Transferred approximately 5 billion annuity liabilities to Guardian Assurance Transferred business of NPI Limited to Phoenix Life Limited and London Life Limited to Phoenix Life Assurance Limited 2013 Successful debt re-terming and equity raising of 250 million 2014 Divestment of Ignis Asset Management Refinanced the Group s remaining senior bank debt and PIK notes into a single 900 million facility Issued 300 million unsecured 7 year bond 2015 Investment grade credit rating achieved from Fitch Ratings Solvency II full internal model approved Exchange of Tier 1 bonds into new subordinated notes LEADERSHIP Executive Management Team Clive Bannister Jim McConville Fiona Clutterbuck Steve Fawcett Andy Moss Wayne Snow Simon True Quentin Zentner Group Chief Executive Group Finance Director Head of Strategy, Corporate Development and Communications Group Human Resources Director Chief Executive, Phoenix Life Group Chief Risk Officer Group Chief Actuary General Counsel Phoenix Group Holdings Board Henry Staunton Clive Bannister Jim McConville René-Pierre Azria Alastair Barbour Ian Cormack Isabel Hudson Kory Sorenson David Woods Chairman Group Chief Executive Officer Group Finance Director Non-Executive Director Non-Executive Director & Audit Committee Chairman Non-Executive Director & Remuneration Committee Chairman Non-Executive Director Non-Executive Director Non-Executive Director & Risk Committee Chairman 5
CUSTOMER FOCUS What motivates me is that I work for a Group that genuinely cares about making a difference for customers. Phoenix is determined to set standards for the industry, for example in areas such as finding missing policyholders. Susan McInnes, Customer Director Our Treating Customers Fairly ( TCF ) strategy contains the following goals: To offer our customers security and opportunities for growth; To drive new standards and behaviours in the management of closed book / run-off businesses; To deliver the behaviour which a properly informed and prudent customer is reasonably entitled to expect of us; and to deal with all our customers honestly, openly, competently and with integrity; To have an informed understanding of our customers needs; To be committed to helping our customers get the most out of their relationship with us. Customers remain at the heart of what we do and providing a fair and helpful service is very important to us. We understand that complaints will sometimes happen; and when they do, we aim to rectify them as quickly as possible. If a customer does need to complain, we believe it is important to take ownership of the issue and that during the investigation our customers are kept informed and assured that we are taking steps to fix the problem. The average transfer time for pension to pension and pension to annuity is currently under 11 days against industry guidelines of 12 days or below (FY15 figure). We publish our complaints results on our Group website. The latest report can be viewed at: www.thephoenixgroup.com/customer-support/complaints-information.aspx 6
OUR PEOPLE The Group has been voted one of the UK s Top Employers for the past five years, which is a certification awarded only to organisations that meet the highest standards in Human Resources policy benchmarking. Companies awarded this accreditation are independently recognised as being amongst the best companies to work for in the UK. The Group employs a diverse workforce as evidenced by the percentage of ethnic minority employees compared to our peers, and relatively high numbers of female employees compared to the financial services sector as a whole. The Group recognises the importance of continued staff development and manages a range of external and in-house training programmes, ranging from induction, through to coaching and leadership skills. Voluntary staff turnover and absence rates compare very favourably with industry benchmarks. Total staff across all sites 741* Workforce that is of Black, Asian or Minority Ethnic 15.5%* Staff Turnover (employees choosing to leave voluntarily) 6.1%* Percentage of days lost through sickness 1.4%* Percentage of employees sponsored on a professional qualification 16%* *All 2015 figures PHOENIX IN THE COMMUNITY During the year, 168,809.84 was donated to Midlands Air Ambulance Charity and London s Air Ambulance, a significant amount through extreme fundraising challenges. In total 402,404.30 has been donated to the Air Ambulance charities since the partnership began in April 2014. 5,987.78 was donated to other charities the Group supported during the year, for example Mind, Shelter, SIFA Fireside in Birmingham and the Gurkha Charity Tamu Samaj UK following the earthquake disaster in Nepal. 13,762.16 was donated through the staff-matched fundraising scheme, for causes supported by employees and their families. These include various schools and scouting groups that staff volunteer their time to outside of working hours. The Group s community programme focuses on making a difference in the communities in which the Group s core sites are based. 46,507.82 was donated to various community initiatives during the year. CONTACT DETAILS Shellie Wells Head of Corporate Communications Direct line: +44(0)203 735 0922 Mobile: +44(0)7872 414 137 e-mail: shellie.wells@thephoenixgroup.com 7