Phoenix Share Discussion Threads

[hvs] 23/8/2018 07:34

Positive results and positive outlook.

In markets that are looky a bit toppy this is a good share to hold.

[oniabsta] 23/8/2018 07:32

"The long-term nature of these cash flows enhances the sustainability of our dividend and allows us to increase our 2018 final dividend to an annualised level of £338 million. Whilst we had expected this to equate to a 3.0% uplift in dividend per share, the actual pricing of our rights means that the uplift in our dividend per share is expected to be 3.5%."

Fin 18 divi 25.1p x 1.035 = 25.97p 2019 fin divi ?

[rcturner2] 23/8/2018 07:17

Dividend is slightly under what was originally forecast.

But still yields 6.5% at the current share price.

[skinny] 23/8/2018 07:02

Phoenix Group delivers strong results and will exceed upper end of two year cash generation target. Completion of Standard Life Assurance acquisition anticipated on 31 August 2018.

Phoenix Group, the UK's largest specialist closed life fund consolidator1, announces strong results for the six months ended 30 June 2018.



Financial and Group Highlights

· £349 million of cash generation2 in H1 2018 (H1 2017: £360 million). The Group expects to exceed the upper end of its cash generation target of £1.0 billion - £1.2 billion between 2017 and 2018.

· Solvency II surplus of £2.3 billion3 as at 30 June 2018 (£1.8 billion as at 31 December 2017). Shareholder Capital Coverage Ratio of 180% as at 30 June 20184 (164% as at 31 December 2017).

· Group operating profit of £216 million in H1 2018 (H1 0 £215 million).

· Interim dividend of 22.6p per share, consistent with Final 2017 dividend rebased for July rights issue.

· Fitch Ratings affirmed the Group's ratings in July at A+5; "stable" outlook.

· Phoenix to introduce fee caps on unitised non-workplace pensions for a one off expected cost of £68 million.

· Chairman and Non-Executive Director appointments announced (subject to regulatory approval) and Group Executive Committee strengthened.



Acquisition of Standard Life Assurance

· We anticipate completion of the acquisition on 31 August 2018 subject to obtaining regulatory approval from the CBI by 30 August. Previously announced synergy and cash generation targets unchanged.

· Acquisition funding in place following the £500 million Restricted Tier 1 bond issuance in April and the £950 million rights issue completed in July with 96.25% uptake.

· Strong shareholder support with 99.98% of shareholders voting in favour of the acquisition.



Delivering on strategic priorities

· AXA and Abbey Life integrations completed ahead of plan and targets, delivering cost synergy benefits of £27 million per annum and cumulative cash generation of £768 million.

· Completed first bulk purchase annuity - a £470 million transaction with the Trustee of the Marks and Spencer Pension Scheme.



Commenting on the results, Group CEO, Clive Bannister said:

"The Group has delivered strong cash generation; and expects to exceed its 2017-2018 target having completed the integrations of the AXA and Abbey Life acquisitions. Our commitment to improving customer outcomes is evidenced by the introduction of fee caps on unitised non-workplace pensions following a similar move with workplace schemes in 2017.

Having received enormous support from our investors I am delighted to announce that we anticipate completion of the acquisition of Standard Life Assurance on 31 August 2018. This acquisition and the ongoing Strategic Partnership with Standard Life Aberdeen plc represents a pivotal moment in the Group's history bringing growth opportunities from new business across both Heritage and Open books.

The transaction is evidence of the industry's bifurcation, splitting into "capital heavy" insurance specialists and "capital light" firms. Phoenix's vision is to be Europe's Leading Life Consolidator. The Standard Life Assurance acquisition is a stepping stone on our consolidation journey, but it isn't the final destination and we remain focused on doing more transactions.

I would like to take this opportunity on behalf of the Board to thank Henry for his leadership and guidance during his highly successful period as Chairman of the Group and to welcome Nicholas Lyons who, subject to regulatory approval, will replace Henry on 1 September 2018."

Presentation

There will be a presentation for analysts and investors today at 9.30am (BST) at:

J.P. Morgan, 1 John Carpenter Street, London, EC4Y 0JP

A link to a live webcast of the presentation, with the facility to raise questions, and a copy of the presentation will be available at www.thephoenixgroup.com

[lauders] 23/8/2018 01:36

Agreed edmundshaw! Wishing all holders the best. Nice to see we have managed to close just above the 700p mark. Hopefully we will leave that behind and stay above it when results are digested. Looking forward to the dividend that will be announced when it is paid in October.

[edmundshaw] 22/8/2018 22:45

Results in the morning. Should be interesting!

[hvs] 22/8/2018 13:32

Lets fill it tomorrow.

[skinny] 22/8/2018 13:30

Yes - AFN (I believe) only adjust the charts for splits/consolidation - not rights issues?

Anyway, that apart - I like gaps on charts as they often get filled.

[stun12] 22/8/2018 12:36

Skinny, isn't that graph supposed to be adjusted for the rights issue? It was a considerable dilution (backed with assets, of course) so I can't see how it wouldn't be pertinent. If I remember correctly, pre-rights we would now be at ~765-770p based on the post-rights £7.

[skinny] 22/8/2018 10:35

Looking into the gap - half year results tomorrow.

[edmundshaw] 11/8/2018 12:06

Special dividends Hven't really been a Phoenix thing. With extra cash, they will on past performance either nudge up the dividend or extend the dividend horizon (or both).

[my retirement fund] 10/8/2018 09:47

A few special dividends gotta me on the menu at some stage.

[hvs] 10/8/2018 08:43

Go get it Phoenix

[jonwig] 09/8/2018 18:49

FT this morning:

Life insurer Legal & General expects to book an exceptional profit of up to £400m this year because its customers are not living as long as expected.

The rate of improvement in life expectancy has slowed dramatically in the UK during the past few years, leading insurers to reassess how much they have to hold back to pay their annuity customers.

Gordon Aitken, analyst at RBC Capital Markets, said: “Insurers are assuming positive improvements to life expectancy in their reserves but the latest data tables show that life expectancy for a 65-year-old man declined from 22.5 years in 2015 to 22.1 years in 2017.”

He expects UK life insurers to be releasing reserves for at least the next five years because of changes in longevity expectations.

Last week Aviva announced a release of £200m from its reserves, and on Thursday Legal & General announced it expected a release of between £300m and £400m for the full year, based on its review of death rates in 2016.



It's a lot of money there!

[aleman] 09/8/2018 17:16

In crude terms, fewer people are dying before 65 (for lack of a kidney, AIDS, industrial and car accidents, whatever). This is increasing life expectancy. After 65, however, gains seem to have ground to a near halt. Pensions even suggest a reverse. ONS suggest over 90s are dying off more quickly even if more might be making it there. (This could be worse flu and/or vaccines being ineffective and might reverse.) If you are born now, your life expectancy is probably still rising although at a slower rate. Improving life expectancy at age 50 or so has probably nearly ground to a halt. If you around 65, it is possible your life expectancy is a whisker down on people your age several years ago. Young are still improving - old flat or decreasing. Marginal improvements overall continue but the improvement is at the young end. More people are reaching pensionable age due to lower death rates before 65 but the trend of living longer once they get there seems to have stopped or even reversed. This is what affects pension funds.They've largely stopped increasing life expectancies for retiring pensioners. It varies from fund to fund, based on their own experience so some are still increasing slightly but I believe a few have lowered. I'd have to check on that, though.

[edmundshaw] 09/8/2018 14:57

My reading of the news on falling life expectancy is that it is a reduction from the life expectancy assumptions of a few years ago. Life expectatncy is still going up, but at a much lower rate that anticipated in the UK.

I agree that more drugs are prescribed than are needed. A lot more. Every drug has side-effects, and many of the long term side-effects are unknown. It is not as if even the simpler systems of human molecular biology are fully understood, and its chemical systems are massively interconnected. Same goes for the full effects of most drugs. Sure, serious pathology requires serious intervention, but minor stuff, mostly, the body takes care of very well itself.

[rcturner2] 09/8/2018 14:22

The massive overuse of drugs in the western world is a serious and growing problem.

[pierre oreilly] 09/8/2018 14:02

Do you have any kids? If so, how did the non-drugs policy go down with your wife during labor?

If you don't need drugs then great, no one wants to force any down your throat. But there are plenty who need drugs to survive, and it's silly thinking, as you seem to imply, they should go without them too.

Too many drugs are prescribed these days imo, but that's partly to do with doctors having only 10 minutes to get the patient out and the next one in. And prescriptions being free to most who insist on them.

[rcturner2] 09/8/2018 13:08

nobby, there are 1bn prescriptions every year in the UK, that's 20 a year for every man, woman and child.

How many of those do you think are for the type of conditions you mention?

I haven't had a prescription in the whole time I have been with my wife, which is over 13 years, and probably for much longer before that as well.

[nobbyx] 09/8/2018 12:51

It's easy to refuse to take drugs if one doesn't really need them. Very few of the unfortunates who catch a dose of plague, typhoid, typhus fever, cholera, malaria or the like ever turn away the appropriate life-saving drug...

[rcturner2] 09/8/2018 12:02

He does lol.

[pierre oreilly] 09/8/2018 11:49

Does he have the odd glass of wine?

Having said that, it seems sensible to me to take the minimum drugs possible (with the exception of alcohol!) - he's exceptionally lucky not to need any.