Slide 1: BofA CEO Conference: Navigating COVID-19 and beyond
BofA CEO Conference ‘Navigating COVID-19 and beyond’ Phoenix Group September 2020 1
Slide 2: Phoenix has a clear strategy and a simple framework
Phoenix has a clear strategy and a simple framework A CLEAR STRATEGY A SIMPLE FRAMEWORK Manage in-force business for cash and “Cash is King” and the sustainability of the Heritage resilience and deliver customer dividend is paramount outcomes Complete value accretive M&A, M&A and Underpinned by a
Slide 3: Phoenix delivered a strong set of 1H 2020 results
Phoenix delivered a strong set of 1H 2020 results Cash Resilience Growth £433 £4.0 169% £358 million billion million Cash generation PGH Solvency II PGH Shareholder Incremental long-term cash surplus(1) Capital Coverage generation from new business Ratio(1,2) +51% +29% +41% £433m £4.0bn £358m £287m
Slide 4: Phoenix's business model has been resilient during the pandemic
Phoenix’s business model has been resilient during the pandemic Resilient solvency position through 99% of colleagues working from home dynamic hedging and active within 10 days and no colleagues management of high quality credit furloughed or government support portfolio schemes accessed Proactive
Slide 5: Our resilient balance sheet is well-positioned to navigate risk events
Our resilient balance sheet is well-positioned to navigate risk events Pro-forma HY20 Phoenix Shareholder Capital Coverage Ratio (SCCR) sensitivities relative to Life peers(5) % change in SCCR 60% 40% 20% 0% -20% -40% Phoenix Peer A Peer B Peer C Peer D Peer E Peer F Peer G UK Europe Interest Rates
Slide 6: Phoenix has diversified asset portfolios with high credit quality
Phoenix has diversified asset portfolios with high credit quality Pro-forma group debt portfolio by sector and credit quality • 99% of the pro-forma Combined Group 30 June 2020 Sector shareholder debt portfolio 2% Gilts / Sovereign/Supra/sub-sov Financial Services 3% 3% 1% is investment grade 3% Ban
Slide 7: Resilient balance sheet and strong cash generation supported payment of dividends
Resilient balance sheet and strong cash generation supported payment of final 2019 and 2020 interim dividends 2020 interim dividend Strong cash dividend cover • Phoenix stand-alone Solvency II surplus of £4.0 billion(1) Dividend cover Capital • £5.8 billion of SCR over and above best 3.2x – 3.4x + e
Slide 8: Phoenix is well placed to benefit from industry drivers of change
Phoenix is well placed to benefit strategically from the industry drivers of change, which COVID-19 has accelerated Industry driver Drivers are accelerating Phoenix’s advantages Insurers are Differentiated capability in • More pressure on insurer Heritage management consolidating: balance sheets
Slide 9: Phoenix is united behind its sustainability vision
Phoenix is united behind its sustainability vision of “Committing to a sustainable future” Phoenix focuses on four key areas of commitment as part of our sustainability strategy… Deliver for our customers We aim to provide the right products, solutions and services to our customers to help them enjo
Slide 10: PHOENIX GROUP.
PHOENIX GROUP.
Slide 11: Footnotes
Footnotes (1) The HY20 Solvency II capital position is an estimated position and reflects a dynamic recalculation of transitionals for the Group’s Life companies. Had the dynamic recalculation not been assumed, the Solvency II surplus and the Shareholder Capital Coverage Ratio would decrease by £0.3
Slide 12: Disclaimer and other information
Disclaimer and other information • This presentation in relation to Phoenix Group Holdings plc and its subsidiaries (the ‘Group’) contains, and we may make other statements (verbal or otherwise) containing, forward-looking statements and other financial and/or statistical data about the Group’s curr