REG - Phoenix Group Hldgs - Deleveraging Programme Update

Phoenix groupAnnouncement

20/06/2024 07:00

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RNS Number : 1271T  Phoenix Group Holdings PLC  20 June 2024

 

Phoenix Group Holdings plc

LEI: 2138001P49OLAEU33T68

 

Phoenix Group deleveraging programme update

 

The Board of Phoenix Group Holdings plc ("Phoenix Group" or "the Group") is
pleased to announce the completion of the initial phase of its deleveraging
programme, comprising a debt redemption and refinancing exercise.

This is in support of the Group's stated deleveraging programme, where it
intends to repay at least £500 million of debt and is targeting a Solvency II
leverage ratio of c.30% by the end of 2026.

On 3 May 2024 the Group announced that it would fully redeem its £250 million
Tier 2 notes due 2029 on their first call date of 13 June 2024, which have now
been fully repaid.

The Group has also prudently chosen to re-finance $500 million of its
outstanding Restricted Tier 1 ("RT1") notes callable in early 2025 through a
tender exercise, and successfully issued $500 million of new RT1 notes at a $
coupon of 8.5%.

The Group has therefore reduced its outstanding debt by £250 million, with
its annual debt interest costs broadly unchanged after this redemption and
refinancing exercise. As a result, the Group maintains its strong cash
interest cover of c.6 times.

Enquiries

Investors/analysts:

Claire Hawkins, Director of Corporate Affairs and Investor Relations, Phoenix
Group

+44 (0)20 4559 3161

Andrew Downey, Investor Relations Director, Phoenix Group

+44 (0)20 4559 3145

Media:

Douglas Campbell, Teneo

+44 (0)7753 136 628

Shellie Wells, Corporate Communications Director, Phoenix Group

+44 (0)20 4559 3031

Legal Disclaimers

This announcement 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,
ambitions, outlook, guidance and expectations relating to future financial
condition, performance, results, strategy and/or objectives.

Statements containing the words: 'believes', 'intends', 'will', 'may',
'should', 'expects', 'plans', 'aims', 'seeks', 'targets', 'continues' and
'anticipates' or other words of similar meaning are forward looking.  Such
forward-looking statements and other financial and/or statistical data involve
risk and uncertainty because they relate to future events and circumstances
that are beyond the Group's control. For example, certain insurance risk
disclosures are dependent on the Group's choices about assumptions and models,
which by their nature are estimates. As such, actual future gains and losses
could differ materially from those that the Group has estimated.

Other factors which could cause actual results to differ materially from those
estimated by forward-looking statements include, but are not limited to:
domestic and global economic, political, social, environmental and business
conditions; asset prices; market related risks such as fluctuations in
investment yields, interest rates and exchange rates, the potential for a
sustained low-interest rate or high-interest rate, environment, and the
performance of financial or credit markets generally; the policies and actions
of governmental and/or regulatory authorities, including, for example,
initiatives related to the financial crisis, the COVID-19 pandemic, climate
change and the effect of the UK's version of the "Solvency II" regulations on
the Group's capital maintenance requirements; the impact of changing inflation
rates (including high inflation) and/or deflation; the medium and long-term
political, legal, social and economic effects of the COVID-19 pandemic and the
UK's exit from the European Union; the direct and indirect consequences of the
European and global macroeconomic conditions of the Russia-Ukraine War and
related or other geopolitical conflicts; information technology or data
security breaches (including the Group being subject to cyberattacks); the
development of standards and interpretations including evolving practices in
ESG and climate reporting with regard to the interpretation and application of
accounting; the limitation of climate scenario analysis and the models that
analyse them; lack of transparency and comparability of climate-related
forward-looking methodologies; climate change and a transition to a low-carbon
economy (including the risk that the Group may not achieve its targets);
market competition; changes in assumptions in pricing and reserving for
insurance business (particularly with regard to mortality and morbidity
trends, gender pricing and lapse rates); the timing, impact and other
uncertainties of proposed or future acquisitions, disposals or combinations
within relevant industries; risks associated with arrangements with third
parties; inability of reinsurers to meet obligations or unavailability of
reinsurance coverage; the impact of changes in capital, and implementing
changes in IFRS 17 or any other regulatory solvency and/or accounting
standards, and tax and other legislation and regulations in the jurisdictions
in which members of the Group operate.

As a result, the Group's actual future financial condition, performance and
results may differ materially from the plans, goals, ambitions, outlook,
guidance and expectations set out in the forward-looking statements and other
financial and/or statistical data within this announcement. The Group
undertakes no obligation to update any of the forward-looking statements or
data contained within this announcement or any other forward-looking
statements or data it may make or publish.  Nothing in this announcement
constitutes, nor should it be construed as, a profit forecast or estimate.

This announcement does not constitute an offer to sell or the solicitation of
an offer to buy securities in the United States or in any other jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration, exemption from registration or qualification under the
securities law of any such jurisdiction. The securities referred to above have
not been, and will not be, registered under the U.S. Securities Act of 1933,
as amended (the "Securities Act") or under any relevant securities laws of any
state of the United States and may not be offered or sold to U.S. persons or
to persons within the United States, except pursuant to an exemption from the
Securities Act.

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