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Phoenix Group Holdings PLC (PHNX)

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monabri
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Phoenix Group Holdings PLC (PHNX)

#236675

Postby monabri » July 14th, 2019, 10:32 pm

Snippet I came across (*)

https://www.thisismoney.co.uk/money/mar ... ulled.html

"The Mail on Sunday understands that London-listed rival Phoenix expressed an interest in purchasing ReAssure several months ago, in a move that would have created an £8 billion giant.

City sources said Phoenix, which specialises in buying up old books of life insurance business that other companies no longer want, may look to rekindle talks now that a flotation is off the table"


(mods alerted..new company).

idpickering
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Re: Phoenix Group Holdings PLC (PHNX)

#242280

Postby idpickering » August 7th, 2019, 7:15 am


monabri
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Re: Phoenix Group Holdings PLC (PHNX)

#262986

Postby monabri » November 8th, 2019, 11:55 am

"The Board of Phoenix Group Holdings plc today announces that Clive Bannister, the Group Chief Executive, will retire on 10 March 2020 following the publication of the Group's full year results and after nine years with the business. He will be succeeded by Andy Briggs, who will join the business as CEO- designate (subject to appropriate regulatory approval) on 1 January 2020 in order to effect a smooth handover. Andy Briggs will also be appointed to the Board of Phoenix Group Holdings plc from 1 January 2020 (subject to appropriate regulatory approval)."

https://www.londonstockexchange.com/exc ... 99894.html

idpickering
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Re: Phoenix Group Holdings PLC (PHNX)

#267841

Postby idpickering » November 28th, 2019, 7:05 am

Phoenix Group Holdings plc - Trading Update

Trading update

· £707 million of cash generation2 in 2019 (2018: £664 million), exceeding the upper end of the 2019 cash generation target range of £600 million - £700 million3.

· Solvency II surplus of £3.0 billion4 as at 30 September 2019, unchanged from 30 June 20195 and Shareholder Capital Coverage Ratio of 156% as at 30 September 20196 (160% as at 30 June 2019).

· £440 million of incremental long-term cash generation from new business comprising:

- £205 million in the 9 months ended 30 September 2019 of new Open business (9 months ended 2018 pro forma7: £220 million).

- £235 million from £1.1 billion of Bulk Purchase Annuity liabilities contracted year to date (FY 2018: £250 million incremental long-term cash generation from £0.8 billion contracted liabilities).

· £1.1 billion of illiquid assets sourced year to date with an average credit rating of A+, delivering a £116 million Solvency II benefit. This takes the allocation of illiquid assets backing annuity liabilities to 25%.

· Phoenix Group last week confirmed an enlarged partnership with leading technology and service provider Tata Consultancy Services to support delivery of its Hybrid Customer Services and IT operating model, the final phase of its transition programme.

· Phoenix remains on track to deliver the £1.2 billion total synergy target for the Standard Life Assurance businesses transition which is progressing to plan.

· Phoenix continues to meet or exceed all customer service metrics.





https://www.investegate.co.uk/phoenix-g ... 00069172U/

idpickering
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Re: Phoenix Group Holdings PLC (PHNX)

#267846

Postby idpickering » November 28th, 2019, 7:30 am

I hold these, and are a more recent addition to my HYP, bought in July and August this year. Very handy for diversification, with a great yield on offer too. Steady as she goes is fine by me.

Ian.

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Re: Phoenix Group Holdings PLC (PHNX)

#267869

Postby jackdaww » November 28th, 2019, 9:33 am

idpickering wrote:I hold these, and are a more recent addition to my HYP, bought in July and August this year. Very handy for diversification, with a great yield on offer too. Steady as she goes is fine by me.

Ian.


====================================

ive held since 2014.

very nice total returns so far and seem to be doing well .

probably still a good buy .

:)

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Re: Phoenix Group Holdings PLC (PHNX)

#267873

Postby Dod101 » November 28th, 2019, 9:40 am

I can't say I understand the metrics they quote but I guess things are doing fine. They have a good record.

Dod

idpickering
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Re: Phoenix Group Holdings PLC (PHNX)

#267924

Postby idpickering » November 28th, 2019, 12:32 pm

jackdaww wrote:
probably still a good buy .

:)


Maybe so, but I think I'd wait for the next time they've headed downward in price.

Ian.

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Re: Phoenix Group Holdings PLC (PHNX)

#269447

Postby idpickering » December 6th, 2019, 7:11 am

Proposed acquisition of ReAssure Group plc

The Board of Phoenix Group Holdings plc ("Phoenix" or the "Company" and, together with its subsidiaries, the "Group") is pleased to announce the proposed acquisition of ReAssure Group plc ("ReAssure"), a leading life insurance closed book consolidator in the United Kingdom (the "Acquisition").

Acquisition Highlights

· Confirms Phoenix as Europe's largest life and pensions consolidator.

· Total consideration of £3.2 billion to Swiss Re Group ("Swiss Re") and MS&AD Insurance Group Holdings, Inc. ("MS&AD"), the shareholders in ReAssure, satisfied through a mixture of cash and shares issued to Swiss Re, part of which will be transferred to MS&AD.

· Acquisition expected to generate additional cash flows(1) of approximately £7.0 billion over time, of which approximately £2.7 billion is expected to be generated between 2020 and 2023 and a further £4.3 billion from 2024 onwards.

· Cost and capital synergies of £800 million expected by leveraging Phoenix's highly efficient operating model and approach to capital management.

· Acquisition to add £84 billion of assets under administration(2) and approximately 4.1 million policies(3).

· Meets acquisition criteria, enhances all of Phoenix's key attributes of cash, resilience and growth and supports a proposed 3% increase in the dividend.


https://www.investegate.co.uk/phoenix-g ... 00069056V/

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Re: Phoenix Group Holdings PLC (PHNX)

#269473

Postby Dod101 » December 6th, 2019, 9:10 am



Thanks Ian. My only gripe is that this once again dilutes the holding of existing shareholders. We will then have Standard Life Aberdeen with a smaller stake than their existing 20%, dropping to 14.3% and Swissre and M S & D with 28% of Phoenix. That dilutes us existing shareholders by about the 28% proposed for Swissre and M S & D. We have no choice in this except to sell I guess so I suppose most of us will just hang on, but spraying new shares around like this does not sound to me like a good idea. Anyway they talk of an increase in the dividend of 3% but that will come out in their results next year. I would regard Swissre as a better partner than SLA, in any case.

There seems to me a lot that could go wrong with the new Phoenix Group considering the consolidation and integration taking place within the existing Group and in Reassure. Hope they know what they are doing!

That anyway is my interpretation but life assurance numbers and so on are very opaque to me.

Dod

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Re: Phoenix Group Holdings PLC (PHNX)

#269544

Postby blobby » December 6th, 2019, 11:25 am

Formatted announcement here (which also included a trading update):

https://www.thephoenixgroup.com/~/media ... cement.pdf

I guess that this is what Phoenix does. It has to take on new closed books from time to time otherwise it shrinks to zero. This is another large mouthful however and it will require shareholder agreement just as it did for Standard Life.

New proposed dividend is 48.2p (up from 46.8p)

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Re: Phoenix Group Holdings PLC (PHNX)

#269564

Postby dealtn » December 6th, 2019, 11:54 am

Dod101 wrote:
My only gripe is that this once again dilutes the holding of existing shareholders.


Yes you get diluted, but in return you do get extra assets, profits, cashflow etc. You either trust management are acting in the interest of existing shareholders, or not. It isn't just dilution.

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Re: Phoenix Group Holdings PLC (PHNX)

#269573

Postby Dod101 » December 6th, 2019, 12:19 pm

blobby wrote:Formatted announcement here (which also included a trading update):

https://www.thephoenixgroup.com/~/media ... cement.pdf

I guess that this is what Phoenix does. It has to take on new closed books from time to time otherwise it shrinks to zero. This is another large mouthful however and it will require shareholder agreement just as it did for Standard Life.

New proposed dividend is 48.2p (up from 46.8p)


Phoenix does not have a brilliant record in dividend per share and actually reduced it for a year or two (Maybe associated with the acquisition of the Standard Life portfolio?) This promised 3% increase is to be payable 'from the date of the 2020 final'.That is some way off.

Furthermore the Standard Life business is I think live, but of course the run off business is such that they need to keep making new acquisitions. I am just a bit concerned that they have not yet I think fully integrated the Standard Life business and here we have them with another set to integrate. Anyway it is not I suppose for me to second guess the Directors.

Re dilution, I would have preferred that they had offered a decent sized rights issue to give us the chance of making a further investment to avoid too much dilution, because of course giving Swissre 28% makes it all the harder to increase the dividend per share, apart from anything else.

Dod

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Re: Phoenix Group Holdings PLC (PHNX)

#269578

Postby Alaric » December 6th, 2019, 12:43 pm

Reassure had been due to take on the life business of Legal & General.

That was postponed.

https://www.reassure.co.uk/article/prop ... -reassure/

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Re: Phoenix Group Holdings PLC (PHNX)

#269595

Postby blobby » December 6th, 2019, 1:35 pm

Dod101 wrote:Phoenix does not have a brilliant record in dividend per share and actually reduced it for a year or two (Maybe associated with the acquisition of the Standard Life portfolio?) This promised 3% increase is to be payable 'from the date of the 2020 final'.That is some way off.

I have a feeling that this was not a reduction if you took into account the corporate action at the time. For example if you did nothing then some capital was returned to you via a nil paid rights.

Dod101 wrote:Furthermore the Standard Life business is I think live, but of course the run off business is such that they need to keep making new acquisitions. I am just a bit concerned that they have not yet I think fully integrated the Standard Life business and here we have them with another set to integrate. Anyway it is not I suppose for me to second guess the Directors.

I tried to check this here : https://www.standardlife.com/sl/strateg ... rship.page but I'm none the wiser at the moment. If true then it is news to me.

Dod101 wrote:Re dilution, I would have preferred that they had offered a decent sized rights issue to give us the chance of making a further investment to avoid too much dilution, because of course giving Swissre 28% makes it all the harder to increase the dividend per share, apart from anything else.

Dod


I'd suggest just buying a few more shares when the price drops :-)

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Re: Phoenix Group Holdings PLC (PHNX)

#269608

Postby Dod101 » December 6th, 2019, 2:03 pm

I will not reproduce the post by blobby, but here is my response.

Dividends
The dividend per share was reduced and I speculated whether it was to do with the corporate action, that is the acquisition of Standard Life maybe? Whatever caused it the dividend per share was reduced. They issued new shares to SLA in exchange for buying the Standard Life business, and that was probably responsible for the reduction. Had we taken up our rights at the time that would have helped, but selling the rights has got nothing to do with it.

Open business.
This refers mainly to the Standard Life business acquired and it is not in run off as far as I know.

Dilution
Buying more shares does not really help much, because dilution is dilution, and I do not much like it. If the deal goes through, Swissre will be sitting on 28% of Phoenix with SLA down to around 14.3%. That is a lot in the hands of two shareholders who may or may not want to be long term holders. I do not like companies spraying around new shares in the way Phoenix is doing.

I will of course retain my shares but for the time being the main attraction is the high yield, which looks fairly secure. They announce their annual results in March and it will be interesting to see what they have to say then re the dividend. Meanwhile it will be interesting to see what the papers say tomorrow.

Dod

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Re: Phoenix Group Holdings PLC (PHNX)

#269647

Postby Dod101 » December 6th, 2019, 3:41 pm

The 28% I am attributing to Swissre is of course to be split between Swiisre and MS & AD.

Dod

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Re: Phoenix Group Holdings PLC (PHNX)

#270056

Postby 77ss » December 9th, 2019, 10:15 am

blobby wrote:....
I'd suggest just buying a few more shares when the price drops :-)


Which is exactly what I have done, given today's 4% price drop.

I had a modest amount of accumulated dividends in my ISA looking for a home, so that's done.

Wise? Who knows?!


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