Phoenix Share Discussion Threads

[netcurtains] 16/9/2024 06:51

If have £10k in Phoenix that 10%-ish dividend yield equates to winning £75 a month on £10k premium bonds which is very unlikely...

So theoretically you are "miles" better off putting money into Phoenix (via ISA) compared to Premium bonds if you can accept RISK (eg price will go up or down - sometimes A LOT)

Cheers Net.

[jubberjim] 16/9/2024 06:41

I am pleased that the dividend has been maintained

But I am not that familiar with all the bumf contained within.

I understand profits and dividends and from those two figures I can work out the yield which is what interests(sic) me.

All the other stuff to me is just white noise.

Will hold in the hope that the share price rises but in no rush to add at these levels.

Lots of other fish out there

Best of luck to all

[laurence llewelyn binliner] 16/9/2024 06:34

The reduction in interest rates since June has reversed some of the economic variances and this reversal will continue as interest rates reduce further..

As expected, with the FED rate decision 18th, BOE 19th, hold and watch as the dividends roll in.. :o)

[tornado12] 16/9/2024 06:30

Solid enough results and interest rate trend will give this some tail winds in next 6 months. The divi stability is confirmed so positive GLA

[wallywoo] 16/9/2024 06:26

Interest rates declining for savings, dividend rising here, solid safe investment. This is a very attractive safe investment imho.

[adejuk] 16/9/2024 06:23

what's to complain about?
contented.

[jubberjim] 16/9/2024 06:17

Lots of fluff in there as always

This jurist is still out

Will hold

[skinny] 16/9/2024 06:15

For completeness on the dividend :-

Dividend details

The declared 2024 Interim dividend of 26.65 pence per share is expected to be paid on 31 October 2024.

The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 3 October 2024. The record date for eligibility for payment will be 4 October 2024.

[robsy2] 16/9/2024 06:10

Thanks Skinny
Divi up again on last years. Looks good

[tuftymatt] 16/9/2024 06:08

Obviously we all want more when it comes to a divi but based on such a high yield already I am very happy with what I can see from Skinny.

Good luck all 👍🏻

[skinny] 16/9/2024 06:05

The Board has declared a 2024 Interim dividend of 26.65p per share, equal to the 2023 Final dividend, a 2.5% increase compared to the 2023 Interim dividend.

[skinny] 16/9/2024 06:01

H1 2024 financial results highlights

Cash

· £647m Operating Cash Generation1 (H1 2023: £543m) increased 19%, driven by increased surplus from our growing business and strong delivery of recurring management actions.

· £950m total cash generation2 (H1 2023: £898m) and we are confident of delivering at the top-end of our £1.4-1.5bn target range in 2024.



Capital

· +3%pts of recurring Solvency II ('SII') capital generation in H1, supported by recurring Own Funds growth.

· £3.5bn3 SII surplus remains resilient (FY 2023: £3.9bn), after planned £0.25bn debt repayment and c.£0.2bn investment into our strategic priorities.

· 168%3,4 Shareholder Capital Coverage Ratio (FY 2023: 176%4), remains in top-half of our 140-180% operating range.

· £250m of debt repayment in the period, in line with our intention to repay at least £500m by the end of 2026; SII leverage ratio reduced to 35% (FY 2023: 36%), with (2)%pts debt repayment benefit partly offset by a reduction in Regulatory Own Funds from higher interest rates due to our SII hedging approach.



Earnings

· IFRS adjusted operating profit increased 15% to £360m (H1 2023: £313m5), driven by profitable growth in both Pensions and Savings (£149m) and Retirement Solutions (£210m).

· IFRS loss after tax of £(646)m (H1 2023: £(245)m), primarily due to £(698)m of adverse economic variances from higher interest rates and global equities which are the consequence of our SII hedging approach.

· IFRS shareholders' equity therefore reduced to £1.8bn (FY 2023: £2.7bn6 restated), but the reduction in interest rates since June has reversed some of the economic variances and this reversal will continue as interest rates reduce further.

· Contractual Service Margin (gross of tax) grew 10% to £3.1bn (FY 2023: £2.9bn), driven by new business, management actions and the one-off impacts of the buy-out of an internal pension scheme and modelling refinements.



A progressive and sustainable ordinary dividend policy7

· The Board has declared a 2024 Interim dividend of 26.65p per share, equal to the 2023 Final dividend, a 2.5% increase compared to the 2023 Interim dividend.



H1 financial performance enabled by progress across our strategic priorities of Grow, Optimise and Enhance

Grow

· 83% growth in Workplace net fund flows to £3.3bn (H1 2023: £1.8bn), as we retain our existing customers and win new schemes; H1 includes c.£900m new scheme win asset transfer from a technology business.

· Launched Standard Life Smoothed Return Pension Fund and Standard Life Guaranteed Fixed-term Income products to support reduction in net fund outflows over time.

· £1.7bn of annuity premiums written (H1 2023: £3.2bn), with a further £0.4bn of BPAs transacted since the end of June and an additional £2.2bn of exclusive BPA transactions in progress.

· Reduced annuity capital strain to c.3%8 (FY 2023: 4.7%), reflecting full benefit of the Part VII funds merger completed in 2023 and balance sheet diversification.

· Expect to deploy c.£200m of capital into annuities this year and to write annual premiums of c.£6bn.



Optimise

· £250m debt repayment in June as we deleverage our balance sheet.

· £264m of recurring management actions in H1 across a large number of BAU actions to more efficiently manage our portfolio, with no change in our risk profile; now expect to deliver c.£400m of recurring management actions in 2024.

· Launched a new private markets investment manager - Future Growth Capital - in partnership with Schroders.



Enhance

· Combined our Heritage and Open divisions into a single Group-wide structure and continue to progress our migrations with c.550k ReAssure customers scheduled to migrate to the TCS Diligenta platform by the end of September.

· Business simplification progress means we expect to deliver c.£50m of run-rate cost savings by the end of 2024.

Phoenix discontinues the SunLife sale process

· SunLife is a leading provider of financial protection products direct to the over 50s market in the UK and a valuable asset which contributes to the Group's new business growth.

· Given the current uncertainty in the protection market, the Board has decided to discontinue the sale process and will focus on enhancing the value it generates within the Group.

On track to deliver our financial targets which support our progressive and sustainable dividend

· Cash:

o Operating Cash Generation target of £1.4bn in 2026.

o Total cash generation 1-year target range of £1.4-1.5bn in 2024 and 3-year target of £4.4bn across 2024-26.

· Capital

o Continue to operate within our 140-180% Shareholder Capital Coverage Ratio operating range.

o Targeting a SII leverage ratio of c.30% by the end of 2026.


· Earnings

o Targeting £900m of IFRS adjusted operating profit in 2026.

o £250m of annual run-rate cost savings by the end of 2026.

[tuftymatt] 15/9/2024 17:53

A good set of numbers tomorrow, a nice divi and 601 would see me happy LLB.

Good luck all 👍🏻

[laurence llewelyn binliner] 15/9/2024 14:31

We will find out soon enough.. :o)The trend for interest rates is finally coming our way..650 pence for year end..?

[bluemango] 15/9/2024 14:06

Usual pattern, somewhat unusually, is for interim amount to match the previous final. I know, that sounds the wrong way round - more conventional would be to increase the interim and then match it with the final. But the former is their standard m.o. (going back at least five years)

So I'm expecting 26.65p. Any more would be a bonus.

[jubberjim] 15/9/2024 09:00

I am hoping for at least the same but anticipating 27.35 to give a nice round number

Is in the lap of the gods now

Eyes down in the a.m

Good luck

[scruff1] 14/9/2024 15:49

Synopsis please

Manifestos are old hat. Pre WEF. They are for people who believe politicians are capable of telling the truth. According to a professor of politics at Edinburgh university a survey he carried out showed that that was 5% of respondents. 10% believed it was possible that the earth is flat. The former is more easily disproved.

[philby1] 14/9/2024 15:41

The cuts to the winter fuel allowance were not in their manifesto either!

[netcurtains] 14/9/2024 15:02

Re: ISA's

I remember the PEP (Conservative) was better than the ISA
The labour party got rid of the PEP and replaced it with ISA

So it is quite possible that Labour might downgrade the ISA (as done this to the PEP)...

However I dont think it was in their party political manifesto so I cant see it happening...

the ISA was invented by Tony Blair/Gordon Brown so perhaps that is another reason to leave it be...

[mcunliffe1] 14/9/2024 10:20

Thanks yump.

My take on the headline comments in that linked report would be the massive decrease in EU migration after Brexit contrasting with the massive increase in non-EU migration after Brexit.

This implies a controlling hand. It's not as if a would-be immigrant from, say Sudan or Afghanistan would think, pre-2016, "best if I avoid the UK as too many EU citizens are moving there".

Why cannot that 'controlling hand' explain the rationale?

[yump] 14/9/2024 09:56

For anyone who likes facts:

[mcunliffe1] 14/9/2024 09:11

Excellent post CASSINI. Up-ticked.

[panshanger1] 14/9/2024 08:02

Think they are managing expectations to some extent Might not be quite as bad as we are expecting Please leave the Isas alone ....

[scruff1] 14/9/2024 07:25

If Reeves includes in her budget all the things I have read that she will then someone had better bring her a chair cos she wont be able to stand for that long. I would imagine its going to be nasty though cos Two Tier keeps telling us so and hes on a mission to develop a Thatcher image of toughness and single mindedness. Hes already cleared a space for his portrait that will be installed when the country has learned to love him

[cassini] 13/9/2024 23:57

Clearly they are not all fleeing death and destruction, as France is not known for being an impoverished failed state.

Immigration is a pyramid scheme (at best - the other reason for it I shall not go into at this point, but it's more sinister).

Like all pyramid schemes, the early entrants (let's call them, to oversimplify things, pensioners) benefit from the arrangement, at least, in theory.

However, then the immigrants get old and even more immigrants are needed to support the growing sick and elderly.

Eventually the exponential nature of such pyramid schemes is doomed to fail and the late adopters find themselves with a lot of broken promises and not much else.

Assuming that the reason mass immigration is being allowed is the pyramid scheme one, governments will not tackle it as that would precipitate the very problem they want to avoid.

In the end, social collapse occurs.

Before that though, the penultimate phase is that the pot lid is clamped down even harder by censorship, 'cancel culture', relentless media propaganda and 'hate crime' laws (political tariffs).

We have been in that penultimate phase for a while now, not just the UK but the Western world in general.

The financial system is showing signs of being just such a pyramid scheme too particularly since 1971. The money supply has to keep growing, as unless new money is created there is now way to pay the interest on existing debts.

If in a crisis if the velocity of money slows or people stop borrowing, broadly speaking the central banks have to create money from nothing to keep the system teetering along. This dilutes the value of the currency. In theory they could do something to neutralise this funny money when times are good, but in practice they don't seem to like doing so.

Gold is the canary in the coal mine here and has been rising at about 10%/annum compounded for the last 20 years, albeit lumpily.

It's getting close to £2000/oz now. Makes me wonder what the real rate of inflation has been these last two decades...

Interesting times.