Phoenix Share Discussion Threads

[edmundshaw] 23/2/2018 08:35

What is not to like indeed. Enhanced dividends, greater visibility and sustainability of the dividend (beyond the already 10 year+ horizon we had before today), a management that continues to execute great deals, and all the synergies and benefits of the last two major transactions ahead of targets.

pre XR date £8 seems just a starting point for the likely share price rise here.

[rcturner2] 23/2/2018 08:34

Glad I topped up at 734p on the 2nd Feb.

[ianood] 23/2/2018 08:30

MRF - Not xr, that's why the price is well up on anticipation

[solarno lopez] 23/2/2018 08:29

The document will be published in APRIL

[garycook] 23/2/2018 08:29

tv,Not yet published i believe !

[my retirement fund] 23/2/2018 08:28

There needs to be a publication on the rights issue setting out the timetable surley? I assume its ex rights to new holders already?

[topvest] 23/2/2018 08:25

Anyone found the rights issue terms please? A bit impenetrable. Looks a good deal though judging by the share price performance.

[topvest] 23/2/2018 08:24

Anyone found the rights issue terms please? A bit impenetrable. Looks a good deal though judging by the share price performance.

[sogoesit] 23/2/2018 08:13

Thanks jonwig for some enlightenment... through the opacity ;-)

Of course everything will depend on future prospects which, given management’s performance, should lead to better dividends, than 3%. The issue is in all this, how much value will the market give it... and, therefore, will the yield tighten from the 7%’ish we’ve grown used to?

[jonwig] 23/2/2018 07:51

This deal could just get PHNX into the FTSE100 if MCap became around £3.9bn.

EDIT: that ignores the shares given to SLA as part-consideration. Should get comfortable entry.

[speedsgh] 23/2/2018 07:42

Acquisition of Standard Life Assurance -

announcement includes the following trading update...

Phoenix trading and integration update

Phoenix generated a total of £653 million of cash from the Group's operating companies in 2017 and had holding company cash of £535 million as at 31 December 2017.

The Company is on track to be at the top end of the range of its £1.0 - £1.2 billion cash generation target for 2017 - 2018. In addition, Phoenix today announces a new, long-term cash generation target of £2.5 billion from the existing businesses over the period 2018 - 2022, excluding the impact of the Acquisition.

As at 31 December 2017, Phoenix had an estimated £74 billion of life company assets and 5.6 million policyholders. It had an estimated Solvency II Own Funds of £4.6 billion and estimated Solvency Capital Requirement(4) ("SCR") of £2.8 billion at 31 December 2017. Phoenix's estimated Solvency II surplus as at 31 December 2017 was £1.8 billion, with a Shareholder Capital coverage ratio of 164%.

The integration of AXA Wealth and Abbey Life is now substantially complete, delivering larger than anticipated benefits. Since acquisition, AXA Wealth and Abbey Life have delivered cash generation of £282 million and £236 million respectively. Furthermore, Phoenix now expects higher cost synergies from the acquisitions, from £10 million to £17 million per year for AXA Wealth, and it is expected that cost savings from Abbey Life will increase from £7 million to £10 million per year by the end of the first quarter of 2018.

At its Investor Day on 14 June 2017, Phoenix announced its intention to selectively examine transactions in the Bulk Purchase Annuity market. Phoenix continues to believe that this market offers an attractive and complementary source of assets for the Group, and can confirm that it is currently in exclusive discussions on its first external pensions buy-in transaction.

Phoenix's ongoing onshoring process, including putting in place a new UK-registered holding company for the Group, is expected to occur as soon as is practicable following Completion.

Phoenix will release its Full Year 2017 Results on 15 March 2018.

[jonwig] 23/2/2018 07:39

The rights issue will ask for 242p per existing share, and the price is irrelevant, except large existing shareholders would get even larger if the rights price were low.

Sogoes it - they say:

This additional cash generation supports a proposed increase in the annualised cost of the dividend to £338 million from the date of the 2018 final dividend. Based on the Phoenix closing share price of 759.5 pence per share as at 22 February 2018, this would be approximately equivalent to a 3% increase in the dividend per share.

The actual reported year-on-year dividend per share uplift will depend on the bonus element of the proposed Rights Issue at the time of the start of trading of the nil-paid rights.

... though that's a bit opaque!

[sogoesit] 23/2/2018 07:28

The big one finally arrived... now I have to work out what it will mean for the share price and, more importantly, dividends and yield....
The only glimpse I get is + 3% on the end year 25.1p per share.
But this is dependent on the rights issue somehow.

[solarno lopez] 23/2/2018 07:18

it is, it is

[rcturner2] 23/2/2018 07:17

Deal announced this am.

That is one chunky acquisition. Looks a very good piece of business.

[solarno lopez] 23/2/2018 07:17

EXCELlENT news this morning

[jonwig] 23/2/2018 06:51

But is SLA Insurance a closed book of policies? If not, is this a new departure?

[eeza] 22/2/2018 22:08

Would need a good discount using a rights.

[boonkoh] 22/2/2018 21:53

Would be quite a transformational deal for PHNX! Wondering if they'll be able to raise the 1bn at minimal discount to current share price

[eeza] 22/2/2018 19:32

SP at close may be reacting to this from SLA board

rampant_bull - 22 Feb '18 - 18:44 - 310 of 312

Share price reacting to this towards the close:

Insurer Phoenix is in talks to buy Standard Life Aberdeen's insurance business for 3 billion pounds ($4.2 billion) in a deal that could be announced as soon as Friday, according to a source with direct knowledge of the matter.

Phoenix will finance the acquisition with a rights issue of about 1 billion pounds, the source said on Thursday.

julest1887 - 22 Feb '18 - 18:50 - 311 of 312
more on the above just now:

[edmundshaw] 20/2/2018 10:23

Trailing recommendations again... A crystal ball for broker recommendations would be useful!!

[sogoesit] 19/2/2018 14:05

JP Morgan today raises TP from 837 to 854 - Overweight

[hvs] 14/2/2018 14:27

"I look forward to working with other board members to help shape the future of our world-leading industry to ensure it continues to deliver best outcomes to customers."

And hopefully investors.

[speedsgh] 14/2/2018 12:19

Phoenix boss joins ABI board -

Phoenix Group chief executive Clive Bannister has joined the board of the Association of British Insurers (ABI)...

... Mr Bannister added: "I am very pleased to be joining the ABI board at a time of great change, challenge and opportunity for our industry. The current environment makes it more important than ever that the industry speaks with a clear voice, and that the growing closed fund consolidator sector plays a full part in these conversations.

"I look forward to working with other board members to help shape the future of our world-leading industry to ensure it continues to deliver best outcomes to customers."