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1. Company Snapshot

1.a. Company Description

Phoenix Group Holdings plc operates in the long-term savings and retirement business in Europe.The company operates through four segments: UK Heritage, UK Open, Europe, and Management Services.It provides a range of pensions and savings products to support people across various stages of the savings life cycle.


The company manages Heritage in-force life and pensions policies; and offers and manages long term savings and pensions products.Its products include with-profits and unit-linked funds, and annuities; and workplace pensions, and individual savings and retirement solutions.The company serves individuals, corporates, and employers.


It has a strategic partnership with abrdn plc, TCS, and HSBC.Phoenix Group Holdings plc was founded in 1782 and is based in London, the United Kingdom.

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1.b. Last Insights on PHNX

Phoenix Group Holdings' recent performance was negatively impacted by a significant 31% decline in revenue to UK£8.55b in 1H2025. The company's earnings release revealed a UK£0.18 loss per share, although this is an improvement from the UK£0.67 loss in 1H2024. The UK-based insurer is preparing for a corporate rebranding to Standard Life plc by March 2026. Additionally, the company faced a £20bn loss after a pension giant canceled a contract with Aberdeen, which may have contributed to the negative performance. H.C. Wainwright reiterated a buy rating on the stock with a target of AED3.00.

1.c. Company Highlights

2. Phoenix Group's Strong H1 2025 Results: A Leap Towards Strategic Goals

Phoenix Group reported a robust financial performance in the first half of 2025, with operating profit increasing by 25% to GBP451 million, driven by business growth, higher investment margins, and cost savings. The company's IFRS adjusted operating profit also rose by 25%. The earnings per share (EPS) came out at -0.15584, missing analyst estimates of 0.2594. Despite this, the company's operating cash generation grew by 9% to GBP705 million.

Publication Date: Sep -14

📋 Highlights
  • Operating Profit Surge:: Rose 25% to GBP 451 million, driven by business growth and cost savings, with GBP 1.1 billion target for 2026.
  • Retirement Solutions Growth:: Profit surged 36%, fueled by GBP 3 billion in Business Protection Agreements and GBP 500 million profit from Life subsidiaries.
  • Capital Strength:: Solvency ratio reached 175%, leverage dropped to 34% (GBP 200 million debt repaid), with GBP 5.7 billion distributable reserves.
  • Cost Savings Acceleration:: GBP 160 million cumulative run rate savings by 2025, exceeding prior guidance by GBP 35 million.
  • Strategic Focus Areas:: "Grow, Optimize, Enhance" strategy includes GBP 20 billion in-housing of annuity assets and GBP 300 million+ annual excess cash for deleveraging.

Strategic Progress

Phoenix is making significant strides in its three-year strategy, focusing on growing its U.K. retirement savings and income business, optimizing operations, and enhancing customer outcomes. The company secured GBP3 billion in Business Protection Agreements (BPAs) and saw a 36% growth in profits for Retirement Solutions. Phoenix is on track to achieve its 2026 targets, including a GBP1.1 billion operating profit target.

Balance Sheet Strength

The company's balance sheet is improving, with the solvency capital coverage ratio rising to 175% and leverage ratio decreasing to 34%, despite repaying GBP200 million of debt. This improvement is expected to continue, with Phoenix aiming to reduce its leverage ratio to 30% by 2026.

Valuation Insights

Considering Phoenix's current valuation metrics, the Price-to-Book Ratio stands at 3.78, and the Dividend Yield is 8.35%. These metrics indicate that the market is pricing in a certain level of stability and return for the company's shares. With a Return on Equity (ROE) of -55.29%, it is clear that the company is currently facing some challenges in generating profits from its equity.

Future Plans

Phoenix plans to continue its focus on retail growth, launching a retail advice proposition, and expanding product availability on key platforms. The company will also progress with in-housing annuity backing assets and enhancing customer engagement tools. Additionally, Phoenix will change its name to Standard Life plc in March 2026, unifying its brand strategy and simplifying its business.

Outlook

With a strong financial performance and progress towards its strategic goals, Phoenix is well-positioned for future growth. The company's commitment to deleveraging and its focus on generating attractive returns will be key to its success. As Barry Corns retires after over 1,200 analyst meetings, the company looks forward to the next chapter in its journey.

3. NewsRoom

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FTSE 100 Live: Blue-chip index flat; banks and builders on the march

Nov -27

Source: proactiveinvestors.com

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FTSE 100 Live: London index dragged down by ex-divs and tobacco stocks

Nov -27

Source: proactiveinvestors.com

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Looking at the Narrative for Phoenix Group After Analyst Target Revisions and Profit Margin Gains

Nov -19

Source:

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Phoenix seeks partnership with asset manager – report

Oct -27

Source:

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Phoenix Group And 2 Other Middle Eastern Penny Stocks To Watch

Oct -27

Source:

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The City is running scared of shadow banking’s ‘cockroaches’

Oct -27

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FTSE 100 closes higher despite sluggish economic growth

Oct -16

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The most popular stocks and funds investors bought in September

Oct -08

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.43%)

6. Segments

Retirement Solutions

Expected Growth: 9%

Phoenix Group Holdings plc's Retirement Solutions segment growth is driven by increasing demand for pension de-risking, consolidation of smaller pension schemes, and expansion into the bulk annuity market. Additionally, the company's strong brand reputation, efficient operations, and strategic acquisitions contribute to its 9% growth.

Pensions and Savings

Expected Growth: 11%

Phoenix Group Holdings plc's 11% growth in Pensions and Savings is driven by increasing demand for retirement solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization and cost savings initiatives have improved operational efficiency, contributing to the segment's growth.

Europe and Other

Expected Growth: 8%

Europe and Other segment of Phoenix Group Holdings plc is driven by increasing demand for insurance products, favorable regulatory environment, and strategic acquisitions. The 8% growth is also attributed to the company's expansion into new markets, cost savings initiatives, and effective risk management practices, which have improved operational efficiency and enhanced profitability.

With-Profits

Expected Growth: 12%

Phoenix Group Holdings plc's With-Profits segment growth of 12% is driven by strong annuity sales, increasing demand for guaranteed investment products, and effective asset management. Additionally, the company's ability to optimize its with-profits fund, combined with a favorable regulatory environment, has contributed to this growth.

7. Detailed Products

Life Insurance

Phoenix Group Holdings plc offers a range of life insurance products that provide financial protection to individuals and families in the event of death or terminal illness.

Pensions and Retirement Savings

The company provides a variety of pension and retirement savings products that help individuals plan and save for their retirement.

Annuities

Phoenix Group Holdings plc offers annuity products that provide a guaranteed income stream for life in exchange for a lump sum payment.

Bulk Purchase Annuities

The company provides bulk purchase annuities that allow defined benefit pension schemes to transfer their liabilities to Phoenix Group Holdings plc.

Reinsurance

Phoenix Group Holdings plc offers reinsurance products that provide risk management solutions to other insurance companies.

8. Phoenix Group Holdings plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Phoenix Group Holdings plc is moderate due to the presence of alternative investment products and services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on a few key suppliers for certain products and services.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.78%
Debt Cost 3.95%
Equity Weight 36.22%
Equity Cost 7.77%
WACC 5.33%
Leverage 176.08%

11. Quality Control: Phoenix Group Holdings plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mapfre

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Value: 6.8

Growth: 6.6

Quality: 7.2

Yield: 8.1

Momentum: 10.0

Volatility: 8.7

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E-L Financial

A-Score: 7.8/10

Value: 6.7

Growth: 6.8

Quality: 8.1

Yield: 10.0

Momentum: 8.0

Volatility: 7.3

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Phoenix Group

A-Score: 7.3/10

Value: 7.3

Growth: 6.3

Quality: 3.9

Yield: 10.0

Momentum: 8.0

Volatility: 8.0

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A-Score: 7.3/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 8.8

Momentum: 9.5

Volatility: 6.3

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VIG

A-Score: 7.2/10

Value: 6.4

Growth: 4.2

Quality: 6.2

Yield: 7.5

Momentum: 10.0

Volatility: 9.0

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Old Mutual

A-Score: 5.5/10

Value: 8.9

Growth: 2.9

Quality: 7.6

Yield: 4.4

Momentum: 5.0

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.92$

Current Price

6.92$

Potential

-0.00%

Expected Cash-Flows