Standard Life Plc · LSE:SDLF
Standard Life — Phoenix Group Holdings — H1 2025 Earnings Presentation
62 slides from Standard Life's earnings presentation, Sep 8, 2025
Slide 1: Half year 2025 results
Half year 2025 results Phoenix Group Holdings plc 8 September 2025
Slide 2: Agenda
Agenda Progress on our 3-year strategy 1 Andy Briggs, Group Chief Executive Officer Continued momentum towards our 2026 targets 2 Nicolaos Nicandrou, Group Chief Financial Officer Looking ahead 3 Andy Briggs, Group Chief Executive Officer 2
Slide 3: Progress on our 3-year strategy
Progress on our 3-year strategy Andy Briggs Group Chief Executive Officer
Slide 4: Successfully executing on our vision
Successfully executing on our vision to become the UK’s leading retirement savings and income business Strong execution of strategic priorities Meeting more customer needs and driving growth Balance sheet pivot beginning to show On track to deliver our 2026 targets Regulatory and political tailwinds
Slide 5: Delivering our vision through our strategic priorities
Delivering our vision through our strategic priorities Grow Optimise Enhance Priority: Meeting more of our existing customer Optimising our in-force business Transforming our operating model needs and acquiring new customers and balance sheet and culture 1H progress: Engagement - Received FCA Asset
Slide 6: On track to deliver our 2026 financial targets
On track to deliver our 2026 financial targets 1H25 progress Our 3-year targets Expected to grow at mid-single digit % p.a. from £1.4bn £705 million Operating Cash Generation ‘OCG’ achieved in FY 2024 Cash On track £784 million Total cash generation £5.1bn of total cash generation across 2024-2026 1
Slide 7: The UK retirement savings and income market is growing
The c.£3.6trn(4) UK retirement savings and income market is structurally growing with regulatory and political tailwinds that will further benefit Phoenix Structurally growing Shift to Defined 1 in 7 are on track Workers have Individuals market driven by The population 1 in 10 take Contribution for
Slide 8: Our strategic priorities and market opportunities
Our clear strategic priorities enable us to capitalise on huge market opportunities and achieve our growth ambitions Pensions and Savings Retirement Solutions Our customer Workplace pensions Retail Annuities solutions Direct Intermediated Individual annuities Bulk Purchase Annuities Annual £80bn(5)
Slide 9: We are well-positioned to win share in growing markets
We are well-positioned to win share in growing markets Group competitive advantages… Customer engagement Capital efficiency Cost efficiency 1 in 5 UK adults are Diversified business model across Existing scale and existing customers fee and spread-based businesses leveraging technology …provide the
Slide 10: Pensions and Savings propositions and AUA
Our Pensions and Savings propositions help customers journey to £190bn AUA and through retirement Our capital-light fee-based Pensions and Savings business Our investments mean we continue to win… …and deliver strong financial performance Engagement Product Growing our assets, with average AUA +5% S
Slide 11: Retirement Solutions and AUA
Our Retirement Solutions help customers secure income certainty £39bn AUA in retirement Our capital-utilising spread-based Retirement Solutions business Our investments mean we continue to win… …and deliver strong financial performance Product Asset management Engagement Growing our assets, with ave
Slide 12: Evolving our asset management approach
Evolving our asset management approach to optimise customer outcomes and enhance returns Pensions and Savings £190bn AUA Retirement Solutions £39bn AUA Asset management strategy: Asset management strategy: Maintain existing outsourced model for policyholder Evolving to predominantly in-house managem
Slide 13: Capital allocation flexibility and options
Strategic execution creates financial flexibility and options for future capital allocation Sustainable and growing OCG more than covers recurring uses… …building financial strength and flexibility >£1.4bn £1.4bn Expect mid-single digit % OCG growth p.a. going forward Excess cash 2H £0.8bn Progressi
Slide 14: Continued momentum towards our 2026 targets
Continued momentum towards our 2026 targets Nicolaos Nicandrou Group Chief Financial Officer
Slide 15: Strategic execution is driving improved performance
Successful execution of our strategic priorities is driving improved business performance Cash Capital Earnings Profitable growth in Pensions and Savings and Retirement Solutions Strong operational Continued execution of recurring management actions performance… Accelerated delivery of cost saving i
Slide 16: Strong financial performance with positive movement on key metrics
Strong financial performance with positive movement on key metrics Cash Capital Earnings Cash Capital Earnings Operating Cash Generation Shareholder Capital IFRS adjusted Coverage Ratio(2) operating profit £705m 175% £451m 1H24: £647m FY24: 172% 1H24: £360m Total cash generation Solvency II leverage
Slide 17: Operating Cash Generation created excess cash
£0.7bn Operating Cash Generation created excess cash of £0.2bn Cash Capital Earnings 9% growth in OCG to £705m OCG created £246m excess cash +9% £705m £705m £647m Recurring £246m £294m management £264m actions £19m £33m £133m Surplus £411m £383m emergence £274m 1H24 1H25 1H25 Dividend Debt interest
Slide 18: Delivered recurring management actions
Delivered £294m recurring management actions Cash Capital Earnings Annuity portfolio Capital improvements Fund simplification re-optimisation What we do: • Evolve our annuity-backing assets whilst • Improve our capital and balance sheet • Increase efficiency of fund management staying cashflow and m
Slide 19: On track to deliver OCG and TCG targets
On track to deliver both our OCG and 3-year TCG targets Cash Capital Earnings On track for mid-single digit % OCG growth per annum At the half-way stage, >50% of the 2024-2026 £5.1bn TCG target has been delivered £5.1bn >£1.4bn £1.4bn £2.5bn £2.5bn 2H £0.8bn £2.6bn £2.6bn 1H £0.6bn £0.7bn FY24 FY25e
Slide 20: Balance sheet pivot and Solvency II surplus
Balance sheet pivot has begun with growth in Solvency II surplus and coverage ratio Cash Capital Earnings +4% SCCR +3% SCCR (4)% SCCR 172% 179% 175% • Other management actions £0.3bn include: £(0.4)bn £0.1bn £3.8bn • In-housing of annuity- £(0.0)bn £(0.0)bn backing assets £0.4bn £(0.2)bn £3.6bn £(0.
Slide 21: Leverage ratio improved to 34%
Leverage ratio improved to 34% and remains on track for c.30% target Cash Capital Earnings Improved SII leverage ratio Illustrative path to c.30% SII leverage ratio target by the end of 2026†† 36% FY24 1H25 (1)% 34% (1)% SII leverage (4)% 36% 34% ratio c.29% (1)% 1% = Debt £3.7bn† £3.6bn† ÷ Regulato
Slide 22: On track to reach 2026 operating profit target
On track to reach 2026 IFRS adjusted operating profit target of c.£1.1bn following 25% growth YoY Cash Capital Earnings 1H24 1H25 YoY % growth • Growth in Group AUA further supported by business trading Pensions and Savings £149m £179m +20% performance Retirement Solutions £210m £286m +36% • Higher
Slide 23: Accelerating delivery of cost savings
Accelerating delivery of our cost savings, now on track for c.£160m in 2025 Cash Capital Earnings Run-rate cost savings† £250m £250m • Accelerated run-rate cost savings delivery profile: • Introduction of Wipro as a strategic partner and other 2026 operating model changes 2026 £90m • c.£160m expecte
Slide 24: Pensions and Savings AUA movements
20% IFRS adjusted operating profit increase in capital-light fee-based Pensions and Savings Cash Capital Earnings Workplace Retail £(4.4)bn Average • Workplace: strong gross inflows; 1H24 £3.3bn £(4.6)bn +5% £2.8bn included £0.9bn large scheme win flows: New £1.3bn £0.7bn flows: AUA: £2.5bn £187.9bn
Slide 25: Retirement Solutions AUA movements
36% IFRS adjusted operating profit increase in capital-utilising spread-based Retirement Solutions Cash Capital Earnings Flows: Average • BPA: disciplined market participation £0.1bn +2% AUA: with £0.3bn completed in 1H and an £38.6bn £39.5bn additional £2.9bn deals completed or AUA movements BPA £1
Slide 26: Strategic execution drives CSM growth
Strategic execution drives 10% Contractual Service Margin growth Cash Capital Earnings +10% £3,705m £24m £33m £95m £(138)m £3,567m • Strategic execution comprises of: £296m £3,257m • In-housing of annuity-backing assets • Wipro strategic partnership • CSM release of £138m, equivalent to 7.5% annuali
Slide 27: Shareholders' equity and recurring sources and uses
Declining shareholders’ equity a known consequence of hedge-related volatility, but recurring sources and uses are converging Cash Capital Earnings Sum of recurring sources and uses: £(36)m £3,443m (1H24: £(139)m) Decline in shareholder’s equity £(274)m due to adverse economic £451m movements from S
Slide 28: Ample headroom to pay progressive dividends
Ample headroom to pay progressive and sustainable dividend on a Cash, Capital and Earnings basis Cash Capital Earnings Cash Capital Earnings Operating Cash Generation Shareholder Capital Distributable reserves of Coverage Ratio(2) parent company FY24 Strong track record of dividend £705m growth, wit
Slide 29: Increased certainty of delivering 3-year targets
Increased certainty of delivering our 3-year targets Cash Capital Earnings Cash Capital Earnings Growing OCG delivering excess cash Excess cash generation supports IFRS adjusted operating profit target every year deleveraging target covers recurring uses Mid-single digit % growth p.a. 34% c.£1.1bn c
Slide 30: Looking ahead
Looking ahead Andy Briggs Group Chief Executive Officer
Slide 31: Our vision and customer journey
Our vision is to become the UK’s leading retirement savings and income business Digital customer interface with personalised data, guidance and advice Innovative retirement Pensions and Savings Retirement Solutions income solutions Asset and fund performance optimised by Phoenix Asset Management Eff
Slide 32: Building momentum across strategic priorities
Building momentum as we continue to deliver on our strategic priorities Grow Optimise Enhance Priority: Meeting more of our existing customer Optimising our in-force business Transforming our operating model needs and acquiring new customers and balance sheet and culture 2H priorities: • Engagement
Slide 33: Phoenix Group is becoming Standard Life plc
Phoenix Group is becoming Standard Life plc Effective March 2026 33
Slide 34: Successfully executing on our vision
Successfully executing on our vision to become the UK’s leading retirement savings and income business Strong execution of strategic priorities Meeting more customer needs and driving growth Balance sheet pivot beginning to show On track to deliver our 2026 targets Regulatory and political tailwinds
Slide 35: Q&A
Q&A ail Phoenix
Slide 36: Appendix
Appendix ail Phoenix
Slide 37: Appendices
Appendices 1. Group cash flow analysis 13. Movement in assets under administration by segment (Pensions and Savings) 2. Total cash generation 2024-2026 illustrative sources and uses 14. IFRS shareholders’ equity, to Solvency II Own Funds, to intrinsic value walk 3. Debt maturity profile and leverage
Slide 38: Group cash flow analysis
Appendix 1: Group cash flow analysis 1H25 • Strong total cash generation of £784m in the period funds our uses of cash Cash and cash equivalents at 1 January 2025 £1,117m • Non-operating net cash outflows of £285m (1H24: £185m) include: Total cash generation† £784m • £149m of investment in strategic
Slide 39: Total cash generation sources and uses
Appendix 2: Total cash generation 2024-2026 illustrative sources and uses £5.1bn TCG 2024-2026 sources c.£0.7bn £4.4bn OCG c.£0.7bn Investment in strategic priorities c.£2.7bn 2024-2026 Dividend, operating costs and debt interest uses £0.6bn £1.1bn excess generation Annuities capital £0.45bn debt re
Slide 40: Debt maturity profile and leverage ratios
Appendix 3: Debt maturity profile and leverage ratios as at 30 June 2025 Leverage ratios FY24 1H25 £500m SII leverage(3,6) 36% 34% £250m Fitch basis(4,6) 23% 24% £500m(1) £500m $500m(2) €500m(2) IFRS basis(5,6) 52% 52% £350m(1) $350m(1,2) $500m(1,2) £197m 2H25 1H26 2H26 1H27 2H27 1H28 2H28 1H29 2H29
Slide 41: Additional Solvency II disclosures
Appendix 4: Additional Solvency II disclosures PGH SII Regulatory Coverage Ratio PGH SCCR(2) 1H25 PGH Own Funds by capital tier 151% 153% 172% 175% £8.4bn Tier 3 Surplus Surplus Surplus Tier 2 Surplus £3.5bn £3.6bn £3.5bn £3.6bn £4.8bn £10.4bn £10.4bn £8.4bn £8.4bn £6.9bn £6.8bn Tier 1 £4.9bn £4.8bn
Slide 42: Change in Life Companies' Free Surplus
Appendix 5: Change in Life Companies’ Free Surplus £0.1bn £0.3bn £(0.8)bn £0.4bn £1.9bn £1.9bn £(0.0)bn £0.0bn £(0.1)bn Operating Cash Generation Free surplus Surplus generation Recurring Other Cash remittances New business Cash remittances Economics and other Free surplus as at FY24 and release of
Slide 43: Hedging protects cash and Solvency II surplus
Appendix 6: Hedging protects cash and Solvency II surplus Protects SII surplus and therefore Hedge unrewarded market risks Reduced SCR on SII balance sheet cash generation What we do Low SII surplus sensitivities – 1H25 SII undiversified shareholder SCR† Hedged risks = We hedge unrewarded market ris
Slide 44: IFRS equity to Solvency II surplus bridge
Appendix 7: IFRS shareholders’ equity to Solvency II surplus bridge Impact of hedging in 1H25 (post-tax) £(0.2)bn† + £0.1bn + £0.0bn = £(0.1)bn £8.4bn £3.6bn qualifying debt £(4.8)bn £(1.2)bn £3.7bn £3.6bn £(1.2)bn £4.8bn £2.7bn £0.8bn Shareholders’ CSM (net of tax) IFRS Investment Other valuation S
Slide 45: Solvency II coverage ratio sensitivities
Appendix 8: PGH Solvency II Shareholder Capital Coverage Ratio sensitivities Unrewarded market risks(15) Demographic risks(15) Rewarded market risks(15) Base position Equities Long-term Long-term Long-term Currency Currency Lapse Longevity Property† Credit Credit†† 20% fall in rates rates inflation
Slide 46: IFRS sensitivities
Appendix 9: IFRS sensitivities IFRS shareholders’ equity Post-tax P&L impact CSM impact Equities -10% £207m Equities -10% £207m Equities -10% £(52)m Equities +10% £(202)m Equities +10% £(202)m Equities +10% £54m Long-term Long-term Long-term £379m £521m £(4)m rates -100bps rates -100bps rates -100bp
Slide 47: With-Profits simplification programme
Appendix 10: With-Profits simplification programme Context Benefits Outcome c.£35bn AUA in With-Profits • 1H25: c.£50m non-RMA benefit from 1 fund segment Non-recurring management action benefits • Total of c.£0.15bn non-RMAs benefit from 12 funds over the next two years 22 With-Profits funds, of wh
Slide 48: Movement in assets under administration
Appendix 11: Movement in assets under administration Movement in AUA from 1 January 2025 to 30 June 2025 Split by segment £10.2bn £6.9bn £295.1bn £292.0bn £(14.0)bn £31.3bn £(3.8)bn Group net fund flows £35.3bn £295.1bn £38.8bn £189.7bn Opening Gross Gross Market movements Closing AUA FY24 inflows o
Slide 49: Movement in assets under administration by segment
Appendix 12: Movement in assets under administration by segment Retirement Solutions With-Profits Europe and Other FY24 AUA £40.3bn FY24 AUA £29.0bn FY24 AUA £36.2bn Gross inflows Gross inflows £0.7bn £1.4bn - new Gross inflows - new £0.1bn - existing Gross inflows Net flows of Net flows of Gross in
Slide 50: Pensions and Savings AUA movements
Appendix 13: Movement in assets under administration by segment (Pensions and Savings) Pensions and Savings – total AUA Pensions and Savings – Workplace Pensions and Savings – Retail FY24 AUA £66.5bn FY24 AUA £120.0bn c.12% Gross inflows Gross inflows £2.4bn £1.3bn - new - new Gross inflows Net flow
Slide 51: IFRS equity to intrinsic value walk
Appendix 14: IFRS shareholders’ equity, to Solvency II Own Funds, to intrinsic value walk IFRS shareholders’ equity to SII Own Funds (excl. debt) Illustrative view of sources of future value (not to scale) £(1.2)bn £4.8bn £3.7bn £(1.2)bn £2.7bn £0.8bn Shareholders’ CSM (net IFRS Investment Other val
Slide 52: 1H25 IFRS adjusted operating profit drivers
Appendix 15: 1H25 IFRS adjusted operating profit drivers Risk Operating Expected Non- Non- Total Drivers of overall improvement in 1H25 profit economic CSM release adjustment on investment investment experience attributable Other operating IFRS adjusted operating profit release margin expenses profi
Slide 53: Pensions and Savings operating profit analysis
Appendix 16: Pensions and Savings IFRS adjusted operating profit analysis 1H25 1H24† 2H24 2024 • Insurance result benefits from higher CSM and RA, offset by other items CSM and RA release £21m £18m £27m £45m • Investment result benefits from higher Other insurance items £(5)m £(2)m £11m £9m charges
Slide 54: Retirement Solutions operating profit analysis
Appendix 17: Retirement Solutions IFRS adjusted operating profit analysis 1H25 1H24 2H24 2024 • Increase in CSM and RA release, reflecting growth in the annuity book CSM release £91m £73m £77m £150m and benefits from strategic actions RA release £14m £10m £14m £24m • Lower expected investment margin
Slide 55: Movement in Group Contractual Service Margin
Appendix 18: Movement in Group Contractual Service Margin, including segmental split Movement of the Group CSM from 1 January 2025 to 30 June 2025 +10% £3,705m £24m £33m (£138m) £3,567m £95m £3,257m £296m (£892m) £2,675m Total CSM Strategic Assumption New business Interest Total CSM CSM release Tota
Slide 56: Shareholder credit portfolio
Appendix 19: Shareholder credit portfolio Prudently positioned shareholder credit portfolio Credit rating 3% AAA AA A BBB 4% 11% 12% 40% 30% 18% 35% 12% £38.4bn Shareholder credit assets are a small proportion of our c.£295bn balance sheet (c.13%) 16% Our prudent portfolio is c.100% investment grade
Slide 57: Diversification of illiquid asset portfolio
Appendix 20: Diversification of illiquid asset portfolio as at 30 June 2025 Equity Release Mortgages Housing Associations £4.7 billion with AA rating £1.2 billion with A rating £0.8bn • Broad regional spread with average LTV of 32% • 100% of portfolio is secured on assets £1.1bn • Secured on propert
Slide 58: ESG ratings and collaborations
Appendix 21: ESG ratings and collaborations Strong ESG ratings Collaborations and Commitments Ratings agency FY24 1H25 Change MSCI AAA AAA Sustainalytics 18.5 / low risk 18.6 / low risk CDP A- A- S&P Global ESG 62 65 ISS ESG corporate rating C+ prime C+ prime ESG ratings may vary among ESG rating ag
Slide 59: 2025 sustainability commitments
Appendix 22: 2025 sustainability commitments Key 2025 commitments ESG Theme: Planet ESG Theme: People We want to help shape a better future. This means delivering good outcomes We want to help people live better longer lives. This means tackling the for our customers, playing a key role in deliverin
Slide 60: Footnotes
Appendix 23: Footnotes 1. The Board will continue to prioritise the sustainability of our dividend over the long term. Future dividends and annual increases will be subject to the discretion of the Board, following assessment of longer-term affordability. At 31 December 2024, distributable reserves
Slide 61: Footnotes continued
Appendix 23: Footnotes (continued) 12. In the 2024 Annual Report and Accounts, the Group identified material corrections to previously reported results, leading to a restatement of retained earnings and other receivables of £74 million in the balances as at 1 January 2024. Consequently, retained ear
Slide 62: Disclaimer
Disclaimer This presentation in relation to Phoenix Group Holdings plc and its subsidiaries (the ‘Group’) contains, and the Group may make other statements (verbal or otherwise) containing, forward-looking statements and other financial and/or statistical data about the Group’s current plans, goals,
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