VALUATION OF DEBT AND NON-CONTROLLING INTERESTS The Group’s statement of consolidated financial position as at 31 December 2015 includes Perpetual Reset Capital Securities with principal outstanding of £6 million (2014: £394 million), Phoenix Life Limited subordinated debt with a face value of £200 million (2014: £200 million), the PGH Capital Limited senior bond with a face value of £300 million (2014: £300 million) and the PGH Capital Limited subordinated notes issued during the year, with principal outstanding of £396 million (net of internal holdings). These listed securities have been included within the MCEV at their market value quoted at the reporting date.
The table below summarises the face and market values of these debt obligations after adjustment for internal holdings in the Perpetual Reset Capital Securities and the PGH Capital subordinated notes: Face value £m
7. SENSITIVITY TO ASSUMPTIONS The table below summarises the key sensitivities of the MCEV of covered business at 31 December 2015 2015 Life MCEV
The voting results for our 2016 AGM, including proxy votes and votes withheld, will be available on the Group’s website shortly after the meeting.
Phoenix Group FTSE 250 (ex Inv Trusts) FTSE 350 Life Assurance
WARNING TO SHAREHOLDERS Over recent years, many companies have become aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters. These are typically from overseasbased ‘brokers’ who target UK shareholders, offering to sell them what often turn out to be worthless or high-risk shares in US or UK investments. These operations are commonly known as ‘boiler rooms’.
SHARE PRICE You can access the current share price of Phoenix Group Holdings on the Group’s website together with electronic copies of the Group’s financial reports and presentations at www.thephoenixgroup.com/investor-relations.aspx.
FORWARD-LOOKING STATEMENTS The 2015 Annual Report and Accounts 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 and expectations relating to future financial conditions, performance, results, strategy and/or objectives.
Nothing in the 2015 Annual Report and Accounts is or should be construed as a profit forecast or estimate.
ALM Asset Liability Management – Management of mismatches between assets and liabilities within risk appetite
CLOSED LIFE FUND A fund that no longer accepts new business. The fund continues to be managed for the existing policyholders
EXPERIENCE VARIANCES Current period differences between the actual experience incurred and the assumptions used in the calculation of MCEV or IFRS insurance liabilities
Gross shareholder debt (financial leverage basis) is defined as the sum of the notional face value of shareholder debt and 100% of the face value of the Tier 1 notes
HOLDING COMPANIES Refers to Phoenix Group Holdings, PGH Capital Limited, Phoenix Life Holdings Limited, Pearl Group Holdings (No. 2) Limited, Impala Holdings Limited, Pearl Group Holdings (No. 1) Limited, PGH (TC1) Limited, PGH (TC2) Limited, PGH (MC1) Limited, PGH (MC2) Limited, PGH (LCA) Limited, PGH (LCB) Limited, PGH (LC1) Limited, PGH (LC2) Limited and Pearl Life Holdings Limited
IGD Insurance Groups Directive – The European Directive setting out the current capital adequacy regime for insurance groups as implemented by the PRA
NET SHAREHOLDER DEBT Shareholder debt (including the Tier 1 Notes) less holding company cash and cash equivalents
PILLAR 1 EU-directive-based capital requirements as implemented by the PRA for insurance companies. The Pillar 1 surplus is the excess of available capital resources over the regulatory capital resource requirements
PPFM Principles and Practices of Financial Management – A publicly available document which explains how a company’s with-profit business is run. As part of demonstrating that customers are treated fairly, the Board certifies that the PPFM has been complied with
PVFP Present Value of Future Profits – The present value of profits attributable to shareholders arising from the relevant in-force business
UNIT-LINKED POLICY A policy where the benefits are determined by the investment performance of the underlying assets in the unit-linked fund
Our highly focused area of specialisation allows us to recruit the very best and most experienced individuals in the field, particularly in niche areas such as with-profit funds.
Registered address Phoenix Group Holdings PO Box 309 Ugland House Grand Cayman KY1-1104 Cayman Islands Cayman Islands Registrar of Companies Number 202172
Principal place of business Phoenix Group Holdings 1st Floor 32 Commercial Street St Helier JE2 3RU Jersey