Phoenix Group Holdings plc (LON:PHNX) has announced its 2025 Interim Results.
Strong growth and strengthening Solvency balance sheet
Delivering against strategic priorities
Improved leverage and solvency ratios
Firmly on track to meet 2026 targets
“This is a strong first half performance with progress against all key financial metrics we use to drive the business, demonstrating continued momentum towards our 2026 targets. We are increasingly well placed to serve our customers’ retirement needs and create further customer and shareholder value as we fulfil our vision to become the UK’s leading retirement savings and income business. We’ve strengthened our balance sheet and continued to invest in our market-leading Pensions and Savings and Retirement Solutions businesses. Our strategic delivery includes moving ahead with our advice proposition and in-housing the management of annuity-backing assets to benefit from our scaled asset management capabilities. We support c.12 million customers in managing over £295 billion in assets under administration. Changing our name from Phoenix Group Holdings plc to Standard Life plc in March 2026 brings our most trusted brand to the forefront and demonstrates our commitment to helping customers secure a better retirement.”
Andy Briggs, Group Chief Executive Officer
Strong H1 2025 financial performance
| 30 June 2025 | Comparative | % change | |
| Operating Cash Generation1 | £705m | (H1 2024: £647m) | +9% |
| Total cash generation2 | £784m | (H1 2024: £950m) | -17% |
| Shareholder Capital Coverage Ratio3 | 175% | (FY 2024: 172%) | +3pp |
| Solvency II (‘SII’) surplus | £3.6bn | (FY 2024: £3.5bn) | +2% |
| SII leverage ratio4 | 34% | (FY 2024: 36%) | -2pp |
| IFRS adjusted operating profit | £451m | (H1 2024: £360m) | +25% |
| Cumulative annual run-rate cost savings delivered | £100m | (FY 2024: £63m) | N/A |
| IFRS loss after tax | £(156)m | (H1 2024: £(646)m) | +76% |
| IFRS adjusted shareholders’ equity | £3,443m | (FY 2024: £3,656m | -6% |
| 2025 Interim dividend | 27.35pps | (H1 2024: 26.65pps) | +2.6% |
Continued operating momentum in core businesses
Pensions and Savings: successfully growing our capital-light fee-based business
· 20% IFRS adjusted operating profit growth to £179m
· 5% growth in average assets under administration (‘AUA’) to £187.9bn
· 2bps improvement in margin to 19bps driven by cost efficiencies
· Workplace net inflows of £2.8bn (H1 2024: £3.3bn) comprised £4.9bn gross inflows; H1 2024 included a £0.9bn one-off bulk win; solid pipeline for H2
· Retail net outflows improved to £4.4bn (H1 2024: £4.6bn) reflecting retail strategy green shoots
Retirement Solutions: strong growth in operating profit and solid pipeline for H2
· 36% IFRS adjusted operating profit growth in our capital-utilising spread-based business to £286m, reflecting higher portfolio enhancement actions and cost discipline
· Group CSM (gross of tax) grew 10% to £3,567m (FY 2024: £3,257m)
· £0.3bn BPA volumes written in HY 2025 reflecting selective pricing in a competitive market
· £3.2bn BPA volumes completed and exclusive on year to date at c.3% capital strain5 and our largest ever deal of £1.9bn completed in July.
· £0.6bn individual annuity premiums written (HY 2024: £0.5bn)
· Continue to expect to deploy up to c.£200m of capital into annuities in 2025
Progress across all strategic priorities
Grow: meeting more of our existing customer needs and acquiring new ones
· Progressed customer engagement tools
o Received FCA approval for our own in-house Retail advice proposition, a key milestone and enables imminent launch
o Launched Annuity Desk for Standard Life customers to support a digital customer experience
· Enhanced product build-out
o Completed our portfolio of innovative retirement income solution products with the launch of the Guaranteed Lifetime Income plan
o Innovated BPA solutions through longevity insurance novations making our BPA proposition more attractive to customers
Optimise: optimising our in-force business and balance sheet
· Evolving management of our annuity-backing assets to a predominantly in-house model by leveraging our scaled asset management capabilities to optimise customer outcomes and enhance returns
o Phoenix Group are now managing £5bn of our £39bn annuities portfolio in-house, and are currently preparing to in-house a further c.£20bn
o Underpins our ability to deliver recurring management actions and delivers cost savings
· Excess cash generation has enabled further deleveraging
o $250m debt repaid in February
o £294m recurring management actions delivered in HY 2025 (HY 2024: £264m)
Enhance: transforming our operating model and culture
· Cumulative cost savings increased to £100m with FY2025 expectations of c.£160m, reflecting a £35m acceleration
o Progressing our migrations to TCS BaNCS platform; 0.8m policies migrated in HY 2025
o Entered into strategic partnership with Wipro to manage 1.9m policies
Outlook
· Firmly on track to deliver all our financial targets which support our progressive and sustainable dividend policy6
· Continued execution on strategic priorities, with a focus on customer engagement
· Move to Standard Life plc in March 2026 brings our most trusted brand to the forefront and supports our organic growth strategy
Firmly on track across all financial targets
| Financial target | Progress to date | ||
| Cash | · Mid-single digit percentage growth p.a. in Operating Cash Generation1 | On track | · 9% growth year-on-year in HY 2025 |
| · Total cash generation2 3-year target of £5.1 billion across 2024-26 | On track | · 50% achieved / £2.6 billion achieved | |
| Capital | · Operate within our 140-180% Shareholder Capital Coverage Ratio3 operating range | On track | · 175% at end of HY2025 |
| · SII leverage ratio4 of c.30% by the end of 2026 | On track | · 2% point improvement to 34% in HY 2025 | |
| Earnings | · c.£1.1 billion of IFRS adjusted operating profit in 2026 | On track | · 25% growth year-on-year in HY 2025 |
| · £250 million of annual run-rate cost savings by the end of 2026 | On track | · £100 million run-rate savings achieved | |
H1 2025 financial summary
| Financial performance metrics: | 30 June2025 | 30 June2024 | YoYchange | |
| Cash | Operating Cash Generation1 | £705m | £647m | +9% |
| Of which recurring management actions | £294m | £264m | +11% | |
| Total cash generation2 | £784m | £950m | -17% | |
| IFRS | Adjusted operating profit | £451m | £360m | +25% |
| Of which Pensions and Savings | £179m | £149m | +20% | |
| Of which Retirement Solutions | £286m | £210m | +36% | |
| Of which Europe and Other | £41m | £50m | -18% | |
| Of which With-Profits | £4m | £3m | +33% | |
| Of which Corporate Centre | £(59)m | £(52)m | -13% | |
| Adjusted operating profit margin (annualised) | ||||
| Pensions and Savings | 19bps | 17bps | +2bps | |
| Retirement Solutions | 145bps | 109bps | +36bps | |
| Loss after tax | £(156)m | £(646)m | +76% | |
| Dividend | Interim dividend per share | 27.35p | 26.65p | +2.6% |
| Balance sheet metrics: | 30 June2025 | 31 December 2024 | 6-mth change | |
| Solvency II capital | PGH Solvency II surplus | £3.6bn | £3.5bn | +2% |
| PGH Shareholder Capital Coverage Ratio3 | 175% | 172% | +3%pts | |
| Leverage | Solvency II leverage ratio4 | 34% | 36% | -2%pt |
| IFRS | Shareholders’ equity | £768m | £1,213bn | -37% |
| Gross Contractual Service Margin | £3,567m | £3,257m | +10% | |
| Adjusted shareholders’ equity | £3,443m | £3,656m | -6% | |
| Assets | Assets under administration | £295bn | £292bn | +1% |
