Capital Markets Day

This is the archive webcast of the presentation at 11:00 (GMT) on Thursday, 28 November 2019

Loading the player ...
Phoenix Group Capital Markets DayPhoenix Group Capital Markets Day
Nicholas LyonsNicholas Lyons
Phoenix delivers cash, resilience and growthPhoenix delivers cash, resilience and growth
Phoenix continues to deliver against its 2019 strategic objectivesPhoenix continues to deliver against its 2019 strategic objectives
AgendaAgenda
Andy MossAndy Moss
We have a well diversified in-force businessWe have a well diversified in-force business
Phoenix’s in-force business will deliver £12 billion of cash generationPhoenix’s in-force business will deliver £12 billion of cash generation
Cash generation comes from Life Company free surplusCash generation comes from Life Company free surplus
Management actions are focused on increasing free surplusManagement actions are focused on increasing free surplus
£2.5 billion of cash generated from management actions in the last decade£2.5 billion of cash generated from management actions in the last decade
We have a long track record of delivering a wide range of management actionsWe have a long track record of delivering a wide range of management actions
And a strong pipeline of future management actionsAnd a strong pipeline of future management actions
Our changing environment is a source of opportunities for further management actionsOur changing environment is a source of opportunities for further management actions
Our approach to risk management brings resilience to free surplusOur approach to risk management brings resilience to free surplus
Risk management is a continuous processRisk management is a continuous process
We use stress and scenario testing to better understand risk exposuresWe use stress and scenario testing to better understand risk exposures
Case study: Interest rate is a key risk for PhoenixCase study: Interest rate is a key risk for Phoenix
Case study: Phoenix’s dynamic management of interest rate risk delivered £85 million benefit to Solvency II surplusCase study: Phoenix’s dynamic management of interest rate risk delivered £85 million benefit to Solvency II surplus
Phoenix’s resilience to market risks is strong relative to peersPhoenix’s resilience to market risks is strong relative to peers
Key messagesKey messages
Susan McInnesSusan McInnes
Phoenix’s Open business is growingPhoenix’s Open business is growing
£205 million of incremental long-term cash generation from Open business growth£205 million of incremental long-term cash generation from Open business growth
Workplace is the engine of the Open businessWorkplace is the engine of the Open business
We will deliver workplace growth through…We will deliver workplace growth through…
Retail pensions –our aim is to help customers at all stages of their lifetimeRetail pensions –our aim is to help customers at all stages of their lifetime
Customers are moving towards digital firstCustomers are moving towards digital first
Wrap SIPP is delivered through our important Strategic PartnershipWrap SIPP is delivered through our important Strategic Partnership
SunLife -Drive value by building a stand-out over 50s financial services brandSunLife -Drive value by building a stand-out over 50s financial services brand
The European business focuses on maximising valueThe European business focuses on maximising value
Key messagesKey messages
Simon TrueSimon True
Our Heritage business will grow through new annuity businessOur Heritage business will grow through new annuity business
BPA offers attractive returns and extends our long-term cash generationBPA offers attractive returns and extends our long-term cash generation
Our BPA strategy has delivered £485 million of long-term cash generationOur BPA strategy has delivered £485 million of long-term cash generation
There are a range of factors which enable us to deliver value accretive dealsThere are a range of factors which enable us to deliver value accretive deals
Sourcing assets quickly which match liability duration is the key criteria for success in the BPA marketSourcing assets quickly which match liability duration is the key criteria for success in the BPA market
Our Strategic Asset Allocation (“SAA”) for annuities has three key prioritiesOur Strategic Asset Allocation (“SAA”) for annuities has three key priorities
Strong controls and governance ensure we manage risk effectivelyStrong controls and governance ensure we manage risk effectively
“Illiquid” assets are an integral, but proportionate part of our annuity SAA“Illiquid” assets are an integral, but proportionate part of our annuity SAA
Phoenix’s approach to origination is bespoke and disciplinedPhoenix’s approach to origination is bespoke and disciplined
2019 origination delivers diversified assets of appropriate tenor and credit quality2019 origination delivers diversified assets of appropriate tenor and credit quality
We use an independent and robust process to determine the credit rating of our illiquid assetsWe use an independent and robust process to determine the credit rating of our illiquid assets
Our £5 billion illiquid asset portfolio is well diversifiedOur £5 billion illiquid asset portfolio is well diversified
Our Equity Release Mortgage portfolio is highly resilient and well diversifiedOur Equity Release Mortgage portfolio is highly resilient and well diversified
We have strong security over our £2 billion portfolio of other illiquid assetsWe have strong security over our £2 billion portfolio of other illiquid assets
Investing in assets brings a positive social impactInvesting in assets brings a positive social impact
Key messagesKey messages
Tony KassimiotisTony Kassimiotis
Our industry is facing a wide range of external challengesOur industry is facing a wide range of external challenges
Phoenix is also bringing together two distinct operating modelsPhoenix is also bringing together two distinct operating models
Our end state operating model leverages the strengths of our strategic partnersOur end state operating model leverages the strengths of our strategic partners
We have clear strategic aims for our Customer Services and IT operating modelWe have clear strategic aims for our Customer Services and IT operating model
Hybrid Customer Services and IT operating model brings enhanced capability and operational flexibilityHybrid Customer Services and IT operating model brings enhanced capability and operational flexibility
Ingredient 1: Unique partnership and leading contractual frameworkIngredient 1: Unique partnership and leading contractual framework
Ingredient 2: The TCSBaNCSplatformIngredient 2: The TCSBaNCSplatform
Ingredient 3: Migration expertise at Phoenix and DiligentaIngredient 3: Migration expertise at Phoenix and Diligenta
Ingredient 4: Edinburgh Hub will support Open business developmentIngredient 4: Edinburgh Hub will support Open business development
Key messagesKey messages
Rakesh ThakrarRakesh Thakrar
Phoenix delivers £707 million cash generation in 2019, exceeding the upper end of the target rangePhoenix delivers £707 million cash generation in 2019, exceeding the upper end of the target range
Solvency II surplus unchanged at £3.0 billion illustrating Phoenix’s resilienceSolvency II surplus unchanged at £3.0 billion illustrating Phoenix’s resilience
We have a three pillar approach to identifying available capital and cashWe have a three pillar approach to identifying available capital and cash
And a framework for capital allocation that brings sustainability to cash generationAnd a framework for capital allocation that brings sustainability to cash generation
We have a range of value accretive growth options and clear criteria for evaluating themWe have a range of value accretive growth options and clear criteria for evaluating them
Cash generation targets reflect in-force business and exclude growthCash generation targets reflect in-force business and exclude growth
The “wedge” illustrates that growth opportunities bring sustainability to cash generationThe “wedge” illustrates that growth opportunities bring sustainability to cash generation
We know the shape of the Heritage “wedge” as run off is predictableWe know the shape of the Heritage “wedge” as run off is predictable
We have three options for offsetting the Heritage run off and delivering sustainable cash generationWe have three options for offsetting the Heritage run off and delivering sustainable cash generation
£440 million long-term cash generation from 2019 growth is incremental to £12 billion guidance£440 million long-term cash generation from 2019 growth is incremental to £12 billion guidance
We will report our progress by rolling forward of our long-term guidance in MarchWe will report our progress by rolling forward of our long-term guidance in March
Our dividend policy remains stable and sustainableOur dividend policy remains stable and sustainable
Key messagesKey messages
Clive BannisterClive Bannister
The accessible Heritage M&A market is growingThe accessible Heritage M&A market is growing
The drivers of consolidation in our industry are increasingThe drivers of consolidation in our industry are increasing
The insurance industry is bifurcatingThe insurance industry is bifurcating
Increasing barriers to entry give Phoenix a competitive advantageIncreasing barriers to entry give Phoenix a competitive advantage
We have clear acquisition criteria and are ready to transactWe have clear acquisition criteria and are ready to transact
Phoenix –Cash, Resilience and GrowthPhoenix –Cash, Resilience and Growth
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A
Q&AQ&A


Click below for:

Nicholas Lyons
Andy Moss
Susan McInnes
Simon True
Tony Kassimiotis
Rakesh Thakrar
Clive Bannister
Q&A
Slides
Search
Documents

Phoenix Group Capital Markets Day
Phoenix Group Capital Markets Day
Nicholas Lyons
Nicholas Lyons
Phoenix delivers cash, resilience and growth
Phoenix delivers cash, resilience and growth
Phoenix continues to deliver against its 2019 strategic objectives
Phoenix continues to deliver against its 2019 strategic objectives
Agenda
Agenda
Andy Moss
Andy Moss
We have a well diversified in-force business
We have a well diversified in-force business
Phoenix’s in-force business will deliver £12 billion of cash generation
Phoenix’s in-force business will deliver £12 billion of cash generation
Cash generation comes from Life Company free surplus
Cash generation comes from Life Company free surplus
Management actions are focused on increasing free surplus
Management actions are focused on increasing free surplus
£2.5 billion of cash generated from management actions in the last decade
£2.5 billion of cash generated from management actions in the last decade
We have a long track record of delivering a wide range of management actions
We have a long track record of delivering a wide range of management actions
And a strong pipeline of future management actions
And a strong pipeline of future management actions
Our changing environment is a source of opportunities for further management actions
Our changing environment is a source of opportunities for further management actions
Our approach to risk management brings resilience to free surplus
Our approach to risk management brings resilience to free surplus
Risk management is a continuous process
Risk management is a continuous process
We use stress and scenario testing to better understand risk exposures
We use stress and scenario testing to better understand risk exposures
Case study: Interest rate is a key risk for Phoenix
Case study: Interest rate is a key risk for Phoenix
Case study: Phoenix’s dynamic management of interest rate risk delivered £85 million benefit to Solvency II surplus
Case study: Phoenix’s dynamic management of interest rate risk delivered £85 million benefit to Solvency II surplus
Phoenix’s resilience to market risks is strong relative to peers
Phoenix’s resilience to market risks is strong relative to peers
Key messages
Key messages
Susan McInnes
Susan McInnes
Phoenix’s Open business is growing
Phoenix’s Open business is growing
£205 million of incremental long-term cash generation from Open business growth
£205 million of incremental long-term cash generation from Open business growth
Workplace is the engine of the Open business
Workplace is the engine of the Open business
We will deliver workplace growth through…
We will deliver workplace growth through…
Retail pensions –our aim is to help customers at all stages of their lifetime
Retail pensions –our aim is to help customers at all stages of their lifetime
Customers are moving towards digital first
Customers are moving towards digital first
Wrap SIPP is delivered through our important Strategic Partnership
Wrap SIPP is delivered through our important Strategic Partnership
SunLife -Drive value by building a stand-out over 50s financial services brand
SunLife -Drive value by building a stand-out over 50s financial services brand
The European business focuses on maximising value
The European business focuses on maximising value
Key messages
Key messages
Simon True
Simon True
Our Heritage business will grow through new annuity business
Our Heritage business will grow through new annuity business
BPA offers attractive returns and extends our long-term cash generation
BPA offers attractive returns and extends our long-term cash generation
Our BPA strategy has delivered £485 million of long-term cash generation
Our BPA strategy has delivered £485 million of long-term cash generation
There are a range of factors which enable us to deliver value accretive deals
There are a range of factors which enable us to deliver value accretive deals
Sourcing assets quickly which match liability duration is the key criteria for success in the BPA market
Sourcing assets quickly which match liability duration is the key criteria for success in the BPA market
Our Strategic Asset Allocation (“SAA”) for annuities has three key priorities
Our Strategic Asset Allocation (“SAA”) for annuities has three key priorities
Strong controls and governance ensure we manage risk effectively
Strong controls and governance ensure we manage risk effectively
“Illiquid” assets are an integral, but proportionate part of our annuity SAA
“Illiquid” assets are an integral, but proportionate part of our annuity SAA
Phoenix’s approach to origination is bespoke and disciplined
Phoenix’s approach to origination is bespoke and disciplined
2019 origination delivers diversified assets of appropriate tenor and credit quality
2019 origination delivers diversified assets of appropriate tenor and credit quality
We use an independent and robust process to determine the credit rating of our illiquid assets
We use an independent and robust process to determine the credit rating of our illiquid assets
Our £5 billion illiquid asset portfolio is well diversified
Our £5 billion illiquid asset portfolio is well diversified
Our Equity Release Mortgage portfolio is highly resilient and well diversified
Our Equity Release Mortgage portfolio is highly resilient and well diversified
We have strong security over our £2 billion portfolio of other illiquid assets
We have strong security over our £2 billion portfolio of other illiquid assets
Investing in assets brings a positive social impact
Investing in assets brings a positive social impact
Key messages
Key messages
Tony Kassimiotis
Tony Kassimiotis
Our industry is facing a wide range of external challenges
Our industry is facing a wide range of external challenges
Phoenix is also bringing together two distinct operating models
Phoenix is also bringing together two distinct operating models
Our end state operating model leverages the strengths of our strategic partners
Our end state operating model leverages the strengths of our strategic partners
We have clear strategic aims for our Customer Services and IT operating model
We have clear strategic aims for our Customer Services and IT operating model
Hybrid Customer Services and IT operating model brings enhanced capability and operational flexibility
Hybrid Customer Services and IT operating model brings enhanced capability and operational flexibility
Ingredient 1: Unique partnership and leading contractual framework
Ingredient 1: Unique partnership and leading contractual framework
Ingredient 2: The TCSBaNCSplatform
Ingredient 2: The TCSBaNCSplatform
Ingredient 3: Migration expertise at Phoenix and Diligenta
Ingredient 3: Migration expertise at Phoenix and Diligenta
Ingredient 4: Edinburgh Hub will support Open business development
Ingredient 4: Edinburgh Hub will support Open business development
Key messages
Key messages
Rakesh Thakrar
Rakesh Thakrar
Phoenix delivers £707 million cash generation in 2019, exceeding the upper end of the target range
Phoenix delivers £707 million cash generation in 2019, exceeding the upper end of the target range
Solvency II surplus unchanged at £3.0 billion illustrating Phoenix’s resilience
Solvency II surplus unchanged at £3.0 billion illustrating Phoenix’s resilience
We have a three pillar approach to identifying available capital and cash
We have a three pillar approach to identifying available capital and cash
And a framework for capital allocation that brings sustainability to cash generation
And a framework for capital allocation that brings sustainability to cash generation
We have a range of value accretive growth options and clear criteria for evaluating them
We have a range of value accretive growth options and clear criteria for evaluating them
Cash generation targets reflect in-force business and exclude growth
Cash generation targets reflect in-force business and exclude growth
The “wedge” illustrates that growth opportunities bring sustainability to cash generation
The “wedge” illustrates that growth opportunities bring sustainability to cash generation
We know the shape of the Heritage “wedge” as run off is predictable
We know the shape of the Heritage “wedge” as run off is predictable
We have three options for offsetting the Heritage run off and delivering sustainable cash generation
We have three options for offsetting the Heritage run off and delivering sustainable cash generation
£440 million long-term cash generation from 2019 growth is incremental to £12 billion guidance
£440 million long-term cash generation from 2019 growth is incremental to £12 billion guidance
We will report our progress by rolling forward of our long-term guidance in March
We will report our progress by rolling forward of our long-term guidance in March
Our dividend policy remains stable and sustainable
Our dividend policy remains stable and sustainable
Key messages
Key messages
Clive Bannister
Clive Bannister
The accessible Heritage M&A market is growing
The accessible Heritage M&A market is growing
The drivers of consolidation in our industry are increasing
The drivers of consolidation in our industry are increasing
The insurance industry is bifurcating
The insurance industry is bifurcating
Increasing barriers to entry give Phoenix a competitive advantage
Increasing barriers to entry give Phoenix a competitive advantage
We have clear acquisition criteria and are ready to transact
We have clear acquisition criteria and are ready to transact
Phoenix –Cash, Resilience and Growth
Phoenix –Cash, Resilience and Growth
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A
Q&A

Download files in PDF

 Download slide presentation
 Download announcement