Phoenix Group Shares Slide: Sees Continued Momentum, Remains on Track for 2026 Targets

Phoenix Group Holdings (LON:PHNX) shares fell around 2.5% at the open on Monday after the company announced interim results for the first half of 2025, demonstrating progress against its strategic objectives and strengthening its solvency balance sheet.

The company said it is firmly on track to meet its 2026 financial targets.

Headline Numbers:

• Operating Cash Generation: £705m (H1 2024: £647m), up 9%
• Total Cash Generation: £784m (H1 2024: £950m), down 17%
• Shareholder Capital Coverage Ratio: 175% (FY 2024: 172%), up 3 percentage points
• Solvency II Surplus: £3.6bn (FY 2024: £3.5bn), up 2%
• IFRS Adjusted Operating Profit: £451m (H1 2024: £360m), up 25%
• Interim Dividend: 27.35pps (H1 2024: 26.65pps), up 2.6%

The results highlight a strong performance across key financial metrics, driven by growth in both the Pensions and Savings and Retirement Solutions businesses. Phoenix Group is managing over £295 billion in assets under administration, serving approximately 12 million customers.

The company's capital position remains robust, with a Shareholder Capital Coverage Ratio of 175% and a Solvency II surplus of £3.6 billion. The Solvency II leverage ratio improved to 34%, reflecting deleveraging efforts. The interim dividend increased by 2.6% to 27.35 pence per share, underscoring the company's commitment to shareholder returns.

Driver Breakdown:

• Pensions and Savings: 20% growth in IFRS adjusted operating profit, driven by cost efficiencies and a 5% increase in average assets under administration.
• Retirement Solutions: 36% growth in IFRS adjusted operating profit, reflecting higher portfolio enhancement actions and cost discipline.
• Strategic Initiatives: Progress in customer engagement tools, including FCA approval for an in-house retail advice proposition and the launch of innovative retirement income solutions.

CEO Andy Briggs stated, “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.”

The transition to managing annuity-backing assets in-house is expected to deliver further cost savings and enhance returns. Cumulative cost savings have reached £100 million, with expectations of approximately £160 million for FY2025.

Meanwhile, the company said that it is changing its name from Phoenix Group Holdings plc to Standard Life plc in March 2026, stating that it is bringing its “most trusted brand to the forefront and demonstrating our commitment to helping customers secure a better retirement.”