Key facts

THE LARGEST UK CONSOLIDATOR OF CLOSED LIFE ASSURANCE FUNDS

Our business manages closed life funds in an efficient and secure manner, protecting and enhancing policyholders' interests whilst maximising value for the Group's shareholders.

As a closed life fund consolidator Phoenix Life focuses on the efficient run-off of existing policies, maximising economies of scale and generating capital efficiencies through operational improvements.


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Phoenix Group's Fundamentals (PHNX)

Berenberg Hold 833.50 888.00 892.00 Resumes

Well that's Berenberg's TP.

Link copied - Insurance group Phoenix prepares bid for Deutsche Bank's Abbey Life

Deutsche Bank Hold 949.75 910.00 1,000.00 Retains

Barclays Capital Underweight 949.75 766.00 766.00 Reiterates

JP Morgan Cazenove Overweight 949.75 888.00 942.00 Reiterates

New high @952p.

Acquisition of Axa Wealth Businesses

Acquisition highlights

· Consideration of £375 million in cash payable on completion(1)

· Acquisition to add £12.3 billion of assets under management and over 910,000 policies

· Significant diversification benefits from the Acquisition, resulting in net capital synergies of c.£250 million(2) within 6 months of completion, inclusive of the impact of cost synergies of £10 million per annum(3)

· Acquisition expected to generate cashflows of approximately £0.3 billion between 2016 and 2020 and £0.2 billion from 2021 onwards

· Supports a proposed increase of the 2016 final dividend by 5% to 28.0 pence per share, equivalent to 56.0 pence per share on an annualised basis

· Price / MCEV of 71%(4) and Price / Solvency II Own Funds of 85%(5)

· Consideration funded from an equity placing and a new short-term debt facility

· Phoenix expects to repay the new short-term debt facility within 6 months from completion, reducing the Financial Leverage ratio by c.2%

Summary of transaction

The Acquisition comprises a pensions and investments business, offering a range of propositions catering to both individual and corporate requirements ("Embassy"), and SunLife, a leader in the over 50s protection sector ("SunLife"), (together "the Acquired Businesses").

The consideration for the Acquisition will be satisfied by the payment of £375 million in cash, funded through a combination of the net proceeds of a placing of 22,542,000 new ordinary shares (the "Placing Shares") in the Company (the "Placing") and a new short-term debt facility (the "New Debt Facility"). The Placing is expected to represent approximately 9.99% of the Company's existing issued share capital.

Acquisition meets Phoenix's stated acquisition criteria

Phoenix has set clear criteria by which it assesses transactions and which are all met by the Acquisition. In particular:

· "Closed Life focus": Significant backbook of over 910,000 policies within Embassy and SunLife

· "Value accretive": The Acquisition is expected to generate cashflows of £0.3 billion between 2016 and 2020 and £0.2 billion of cashflows post 2020. The expected cash generation recognises significant net capital synergies of c.£250 million(2), inclusive of the impact of £10 million of run rate cost synergies per annum(3)

· "Supports dividend": Given the anticipated financial benefits of the Acquisition, Phoenix proposes to increase the final 2016 dividend per share by 5% to 28.0 pence. This would increase the dividend per share to 56.0 pence on an annualised basis, which the Board believes is a sustainable level at which to rebase the dividend going forward

· "Maintains investment grade rating": Phoenix expects to repay the New Debt Facility within 6 months from completion which will further reinforce the investment grade credit rating. The Group expects a reduction of c.2% in its Financial Leverage ratio following repayment of the New Debt Facility

Commenting on the Acquisition, Phoenix's Group CEO, Clive Bannister said:

"The acquisition of the Embassy and SunLife businesses represents another important step forward in Phoenix's growth strategy. The transaction meets our acquisition criteria and will generate additional cash for the Group which supports the proposed increase in Phoenix's dividend. The Group has extensive integration experience and expertise and we believe that both the Embassy and SunLife businesses are a strong fit, benefitting both shareholders and policyholders alike. We will invest heavily to ensure a smooth transition of the two businesses from AXA to Phoenix and we are committed to delivering the highest level of service to both direct and IFA customers, as we do for our existing customers. Looking ahead, we believe there will be further consolidation in the UK life industry and we will continue to explore further opportunities as they arise."

Webcast and Conference call

A webcast and conference call for analysts and investors will be held at 8.30am (BST) today. Details of the webcast and presentation slides can be found on the Group's website, www.thephoenixgroup.com.

Result of Placing

A total of 22,542,000 new ordinary shares in the Company (the "Placing Shares") have been placed by HSBC Bank plc ("HSBC") and J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) ("J.P. Morgan Cazenove") at a price of 860.00 pence per Placing Share, (the "Placing Price") raising gross proceeds of approximately £193.9 million (before expenses).

The Placing Price represents a premium of 1.24 per cent. to the closing price on 26 May 2016 and a discount of 1.60 per cent. to the intra-day price at 9.54 a.m. (being the time the Placing Price was agreed). The net placing price of approximately 844.07 pence per Placing Share to be received by the Company after expenses directly attributable to the Placing represents a discount of approximately 3.42 per cent. to that intra-day price.

The Placing Shares represent approximately 9.99% of the Group's issued ordinary share capital prior to the Placing.

UK competition watchdog to not refer AXA-Phoenix deal for further probe

Interim Results

PHOENIX GROUP REMAINS ON TRACK FOR CASH GENERATION TARGETS
Phoenix Group, the UK's largest specialist closed life fund consolidator, today announces its results for the six months ended 30 June 2016.

FINANCIAL HIGHLIGHTS
· £147 million of cash generation2 in H1 2016 (H1 2015: £110 million)

· Total holding company cash of £921 million2 as at 30 June 2016 (£706 million as at 31 December 2015)

· The Group remains on track to achieve its 2016 cash generation target of £350 million - £450 million and the Group reiterates its longer term target of £2.0 billion between 2016 - 20202

· Solvency II surplus of £1.1 billion3 as at 30 June 2016, which includes the impact of the payment of the interim dividend, compared to £1.3 billion as at 31 December 2015

· Shareholder Capital coverage ratio of 144% as at 30 June 20164 (154% as at 31 December 2015)

· Group IFRS operating profit of £107 million in H1 2016 (H1 2015: £135 million)

· Interim dividend of 26.7p per share, in line with 2015 interim dividend

ACQUISITION OF AXA WEALTH'S PENSIONS AND PROTECTION BUSINESS REMAINS ON TRACK
· Previously announced acquisition of AXA Wealth's pensions and protection businesses for £375 million in cash5, adding over 910,000 policyholders to the Group

· Completion anticipated in the fourth quarter of 2016, subject to regulatory approvals

· Acquisition funding includes net proceeds of £190 million raised through a placing of 22.5 million shares, together with a new, short-term bank facility

· Significant benefits from the acquisition, resulting in net capital synergies of approximately £250 million within 6 months of completion6

· Acquisition expected to generate cashflows of approximately £0.3 billion between 2016 and 2020 and £0.2 billion from 2021 onwards

· Supports a proposed increase of the 2016 final dividend by 5% to 28.0p per share, equivalent to 56.0p per share on an annualised basis.

COMMENTING ON THE RESULTS, GROUP CEO, CLIVE BANNISTER SAID:
"Phoenix remains on track to deliver its cash target for the year, despite very significant market volatility and a sharp fall in long-term interest rates over the year to date. The Group continues to maintain a resilient capital position and has further management actions planned for the second half of the year.

The acquisition of the AXA Wealth businesses is on track and will represent another important step forward in Phoenix's growth strategy. The transaction meets our acquisition criteria and will generate additional cash for the Group which supports the proposed future increase in Phoenix's dividend. Looking ahead, we believe there will be further consolidation in the UK life industry and we will continue to explore further opportunities as they arise." 

Board Changes

Links copied :-

Shore Capital waits for ‘big one’ from Phoenix

Phoenix to ditch Cayman Islands for the UK

HSBC Hold 831.25 920.00 920.00 Retains

Phoenix Group Holdings Statement re. Press Comment

Phoenix Group Holdings ("Phoenix") notes recent media speculation regarding a possible acquisition of Abbey Life Assurance Company Ltd ("Abbey Life") and confirms that it is evaluating a potential transaction.

As stated at the time of the interim results on 25 August 2016, Phoenix continues to explore further acquisition opportunities in the UK closed life sector. In this context, Phoenix is in advanced discussions with Deutsche Bank in relation to a possible acquisition of Abbey Life. There can be no certainty that these discussions will lead to a transaction.

The person responsible for arranging for the release of this announcement on behalf of Phoenix is Gerald Watson.

Any further announcement will be made as and when appropriate.

15 Sep N+1 Singer Buy 27.88 - 35.00 Retains
15 Sep Peel Hunt Buy 27.88 33.00 33.00 Retains
13 Sep Canaccord Genuity Buy 27.88 30.00 40.00 Reiterates

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Total holding for BlackRock, Inc. has gone above 5%

Proposed Acquisition of Abbey Life

Proposed Acquisition of Abbey Life - Reinforces Phoenix's Position as the UK's Leading Closed Life Fund Consolidator

Phoenix Group Holdings ("Phoenix" or the "Company" and, together with its subsidiaries, the "Group") is pleased to announce the proposed acquisition of Abbey Life Assurance Company Limited ("ALAC"), Abbey Life Trustee Services Limited and Abbey Life Trust Securities Limited (together "Abbey Life") from Deutsche Holdings No. 4 Ltd., a wholly owned subsidiary of Deutsche Bank AG (the "Seller") for total consideration of £935 million in cash payable on completion, subject to adjustments (the "Acquisition").

Acquisition Highlights

· Consideration of £935 million in cash payable on completion

· Acquisition to add £10 billion of assets under management and approximately 735,000 policyholders

· Acquisition expected to generate approximately £0.5 billion of aggregate cashflows between 2016 and 2020 and approximately £1.1 billion in aggregate from 2021 onwards

· Attractive price representing 0.89x multiple of Solvency II Own Funds and 0.77x of MCEV(1)

· Acquisition will support a proposed increase in dividends in respect of 2017 to £197 million, representing a further 5%(2) increase in dividend per share ("DPS") in addition to the 5% increase in DPS as a result of the AXA transaction, and equivalent to a total increase in the DPS of 10%(2) from the 2015 level

· Consideration and estimated expenses to be financed through a fully underwritten rights issue to raise a total of £735 million and a £250 million new bank facility

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Obviously they are now a static image!

BlackRock, Inc. has gone above 5%