Phoenix Share Discussion Threads

[value hound] 29/11/2018 08:01

Yes, we should see a reasonable rise today and it's about time too!

[w1ndjammer] 29/11/2018 07:57

Woooosh

WJ.

[linton5] 29/11/2018 07:42

Wow fantastic update what can you say crack on the Phoenix

[jonwig] 29/11/2018 07:42

More detail needed, but their cash generation, solvency and debt rating look to be very reassuring.

I still don't know how bulk annuity purchase works.

[skinny] 29/11/2018 07:04

Phoenix Group announces a strong 2018 year to date trading update, exceeding upper end of two year cash generation target ahead of Capital Markets Day

Phoenix Group, Europe's largest life and pensions consolidator1, announces a strong 2018 year to date trading update on the morning of its Capital Markets Day.

Trading update

· £664 million of cash generation2 in 2018 (2017: £653 million). The Group has delivered £1.3 billion cash generation in 2017 and 2018, exceeding the upper end of its cash generation target of £1.0 billion - £1.2 billion for this period.

· Solvency II surplus of £3.1 billion3 as at 30 September 2018 (£2.5 billion pro-forma as at 31 December 2017). Shareholder Capital Coverage Ratio of 164% as at 30 September 20184 (147% pro-forma as at 31 December 2017).

· Already delivered £400 million of capital synergies on the acquisition of the Standard Life Assurance Limited business against a total £440 million capital synergy target announced for the transaction.

· Assets under administration remain stable at £240 billion as at 30 September 2018 (31 December 2017 proforma: £240 billion) reflecting net business inflows of £3.3 billion by end Q3 on Open business in the UK and Europe.

· Two further bulk purchase annuity transactions completed during the second half taking total 2018 year to date transactions to £0.8 billion.

· Phoenix has selected Diligenta, the FCA regulated subsidiary of TCS, as its partner to deliver a single, digitally enhanced outsourcer platform that will improve customer outcomes and deliver cost savings for our legacy-Phoenix Life policies which is due to be complete by end 2021.

· Fitch Ratings affirmed the Group's ratings in July at A+5; "stable" outlook. Leverage ratio currently 22%6, below the Fitch target range of 25-30%.

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

"The trading update we have announced today demonstrates Phoenix's strength in delivering and ability to exceed our targets. We have delivered £1.3 billion of cash generation in 2017 and 2018, exceeding the upper end of our target range of £1.0 - £1.2 billion and have significantly strengthened our Solvency II surplus position during the year to a Group surplus of £3.1 billion as at 30 September 2018.

We continue to deliver against our strategy with a further two bulk purchase annuity transactions completed in the second half of the year. Operationally, Diligenta will become our preferred outsource partner and enable us to deliver a single, digitally enhanced outsourcer platform to circa 5.5 million of our customers.

The acquisition of Standard Life Assurance Limited completed on 31 August 2018 and was transformational for Phoenix. I am delighted by the significant progress we have already made with the transition process and the £400 million of capital synergies delivered. I look forward to explaining how Phoenix has been re-defined by this acquisition at today's Capital Markets Day".

Presentation

There will be a presentation for analysts and investors today at 11.00am (BST) at:

Four Seasons Ten Trinity Square, London, EC3N 4AJ

A copy of the presentation will be available at www.thephoenixgroup.com

A replay of the presentation will also be available through the website.

[lauders] 29/11/2018 01:31

Hope the Capital Market Day today gets us back on track and we can claw back some of the recent weakness in the share price. Looking forward to seeing what is said and hopefully learning about the exciting future PHNX have before them.

[schofip] 22/11/2018 13:46

I have topped up again 8% dividend with a quality stock definitely worth a punt.

[rimau1] 22/11/2018 12:25

I am very confident that they will use this update to raise their cash generation targets given synergies and M&A consolidation have been ahead of target. We also have new business wins in bulk annuities which will add to cash generation. PHNX is a different beast now which has not been reflected by the market. I too have topped today and will continue to top up over the next week if we experience additional market related drops. 8% yield is crazy given the above....

[cwa1] 21/11/2018 08:33

Had a tiny top up just now in the hope there will be a good story to tell on 29/11. More naivete on my part no doubt!!

[jonwig] 21/11/2018 08:20

A CapitalMarkets Day on 29 Nov. More important, for us, is: A short update on trading and cash generation in the year to date will be released at 7.00am on 29 November 2018.

[edmundshaw] 20/11/2018 10:04

Currently yielding 8%! I know there are others out there (e.g. SLA yielding 8.5% based on historic dividend) but are they as safe as this one?

[linton5] 15/11/2018 14:49

Chasing funds to get in here seems a great entry for a long hold on PHNX, especially the divi

[stevenrevell] 15/11/2018 14:40

What's happened

[skinny] 02/11/2018 11:32

Looks like it Aleman :-

"The change in tax residency is not expected to impact PGH shareholders, other than UK stamp duty reserve tax (currently levied at 0.5%) will be incurred on subsequent purchases of PGH depositary interests."

[aleman] 02/11/2018 10:54

I rang my broker again and was told stamp duty is due though they had not rung me back yet because they were struggling to explain why. The RNS in the previous post explains the change of tax residency early this year so I presume that covers it.

[jonwig] 02/11/2018 09:04

@ davegk - the 31/05/18 SL acquisition prospectus says, on pdf p336:

The Company also expects that SDRT at a rate of 0.5 per cent. will be collected by CREST on a transfer of any Nil Paid Rights or Fully Paid Rights settled through CREST.

That seems to suggest that you should have paid stamp duty when buying ords subsequently.

My own broker has made mistakes with SDRT. If they have charged me, I tend to check; if they haven't I keep quiet.

[aleman] 02/11/2018 09:00

My recent purchase was charged stamp duty - and yet this site says I should not have been charged. I'll contact my broker.

[davegk] 02/11/2018 08:48

Over the last 2 days I have made 3 purchases of PHNX at 3 different brokers, 2 charged me stamp duty and one didn’t.
My last purchase was in 2015, I wasn’t charged stamp duties then.

Does anybody know what is the correct position.

The following is from today’s RNS

“Under the current structure, Old Phoenix is a Cayman Islands-incorporated company which, with effect from 31 January 2018, is tax resident in the United Kingdom (having previously been tax resident in Jersey). This structure is complex for the Group's shareholders, debt investors and regulators”

[jonwig] 02/11/2018 08:20

ian - you're right, of course! I was just being jocular.

[ianood] 02/11/2018 08:05

But a UK domiciled holding company which to many investors eyes is preferable to the Cayman Islands. My old shop, albeit primarily bond tradng, was OECD countries only and that's before the rest of the credit committee piled in with individual sector, tenor and company limits!

[jonwig] 02/11/2018 07:48

Well, my eyes glazed over with that RNS! In short, you'll get 1 new PHNX for every 1 old PHNX.

[skinny] 02/11/2018 07:21

The Board of the Company today announces a proposed scheme of arrangement pursuant to section 86 of the Cayman Islands Companies Law (2018 Revision) (the "Companies Law") (the "Scheme") relating to the corporate restructuring of Old Phoenix and including a related reduction of capital under sections 14 and 16 of the Companies Law (the "Old Phoenix Reduction of Capital"). A circular setting out full details of the Scheme (including notices of the Court Meeting and Scheme General Meeting, each as defined below) (the "Scheme Circular") will be sent to Old Phoenix Shareholders and Old Phoenix DI Holders later today.

If the Scheme is implemented and the Old Phoenix Reduction of Capital is approved, Phoenix Group Holdings plc ("New Phoenix"), a new company incorporated in England & Wales, will become the holding company of Old Phoenix and its consolidated subsidiaries (the "Group"). If approved, the Scheme and the Old Phoenix Reduction of Capital are expected to become effective on or around 12 December 2018 (the "Scheme Effective Date").

more.....

[spittingbarrel] 01/11/2018 14:50

CSN on the move too

[robsy2] 01/11/2018 12:08

You get lucky sometimes.... like edmund i am a long term holder and have bought at 800 p to start with and also at 7/6/5 and maybe 400 p ish, if i remember correctly.
The yield is compelling at 700p and below.
R2

[zangdook] 01/11/2018 11:51

RCTurner2

Something like this?