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M&G PLC and Phoenix Group Holdings PLC on Monday hailed their financial resilience following a life insurance stress test by the UK Prudential Regulation Authority. M&G said that under the three-stage stress scenario, its group shareholder ratio would have declined to 171% from the 223% reported for the end of last year. The group shareholder ratio is M&G’s ‘primary measure of financial strength’, it noted, and at 171%, it would remain within the company’s long-term 160-190% target range. M&G participated in the stress test by the PRA, part of the Bank of England, via life insurance arm Prudential Assurance Co Ltd. The subsidiary’s own shareholder ratio would decrease to 151% from 214% under the stress test conditions. Its regulatory ratio would decrease to 122% from 157%. The stress test scenario included falling interest rates and property prices, together with downgrades and defaults in credit. Phoenix Group said that in the stress test scenario, its group shareholder capital coverage ratio would remain within its 140% and 180% target range, slipping to 155% from 172% at the end of 2024. The group regulatory coverage ratio would decline to 137% under stress test conditions from the 151% reported for the end of 2024. For life insurance arm Phoenix Life Ltd, the PRA published ratio would be 132% under the stress test conditions, compared to 149% at the end of last year. ‘The stress test indicates that the sector and Phoenix Group is resilient to a severe financial market stress scenario,’ it commented. M&G shares were up 0.5% to 264.00 pence early Monday in London. Phoenix Group shares were down 0.1% to 659.50 pence. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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