In this report
Our performance
STRATEGIC REPORT
Why invest in us? 3
Our purpose and strategy 4
Delivering cash 6
Delivering resilience 8
Delivering growth 10
Chairman's statement 12
Group Chief Executive Officer's report 14
Market trends 18
Our business model 20
Our strategic priorities and KPIs 26
Business review 46
Stakeholder engagement 58
Task Force on Climate-related Financial Disclosures 67
SECR statement 77
Risk management 79
Viability statement 90
CORPORATE GOVERNANCE
Chairman's introduction 92
The Board as a guardian of our purpose and values 94
Our leadership 95
Board activities for 2020 96
Board composition, experience and biographies 98
Executive management team 101
The Board's COVID-19 response 102
The Board Sustainability Committee 103
Board engagement with colleagues 104
ReAssure case study - our M&A strategy in action 106
Our stakeholders and the Board's application of section 172 108
Division of responsibilities 112
Independence of Directors 112
Meeting attendance 112
Board education 113
Board Risk Committee report 114
Board Audit Committee report 116
Nomination Committee report 122
Directors' remuneration report 124
Directors' report 159
Statement of Directors' responsibilities 163
FINANCIALS
Independent auditor's report 164
IFRS consolidated financial statements 177
Notes to the consolidated financial statements 184
Parent company financial statements 290
Notes to the parent company financial statements 293
Additional Life Company asset disclosures 303
Additional capital disclosures 307
Alternative performance measures 309
ADDITIONAL INFORMATION
Shareholder information 311
Glossary 313
Forward-looking statements 318
The Strategic Report was approved by the Board of Directors on 7 March 2021 and signed on its behalf by
Andy Briggs
Group Chief Executive Officer
Visit our website atthephoenixgroup.com
KEY PERFORMANCE INDICATORS
£1,713m
(2019: £707m)
Operating companies' cash generation
APM REM
£5.3bn
(2019 pro forma: £4.4bn) Group Solvency II surplus (estimated)
164%
(2019 pro forma: 152%) Group shareholder capital coverage ratio (estimated)
APM REM
£766m
(2019: £483m) Incremental new business long-term cash generation
APM REM
47.5p
2020 total ordinary dividend per share
£1,199m
(2019: £810m)
Operating profit
APM
94%
(2019: 94%) Customer satisfaction score - telephony REM Phoenix Life only
90%
(2019: N/A) Customer satisfaction score - telephony
REM Standard Life only
OTHER PERFORMANCE INDICATORS
£834m
(2019: £116m)
IFRS profit after tax
£13.4bn
2020 pro forma*
(2019 pro forma: £14.1bn) Group long-term free cash
APM
£362m
(2019: £199m)
New business contribution
APM REM
£338bn
(2019: £248bn)
Assets under administration
APM
28%
(2019: 22%)
Fitch financial leverage ratio
APM REM
All amounts throughout the report marked with REM are KPIs linked to Executive remuneration. See Directors' remuneration report on page 124.
All amounts throughout the report marked with APM are alternative performance measures. Read more on page 309.
* 2020 pro forma Group long-term free cash includes £(0.2)bn adverse impact of disposal of Wrap SIPP, Onshore Bond and TIP products to Standard Life Aberdeen and £(0.3)bn adverse impact in relation to the expected increase in the rate of corporation tax from April 2023 to 25% announced in the March 2021 budget.
Read more about our strategic priorities and KPIspage 26 to 45
HELPING PEOPLE SECURE A LIFE OF POSSIBILITIES
STRATEGIC REPORT
Today, there is no longer a typical life and people's pensions needs are therefore evolving.
Phoenix has a pivotal role to play as the country navigates the shifting pensions landscape.
That's why our purpose is helping people secure a life of possibilities. This means providing the right guidance and products, at the right time, to support the right choices.
Our vision is to grow a strong and sustainable business to help more people on their journey to and through retirement.
We will focus on delivering against our strategic priorities and managing the business to deliver cash, resilience and growth.
Phoenix Group Holdings plc Annual Report & Accounts 2020
1
What we do
PHOENIX AT A GLANCE
Phoenix is the UK's largest long-term savings and retirement business with £338 billion of assets under administration and c.14 million customers. We are a constituent of the FTSE 100 with c.7,500 colleagues and offer a broad range of products to support people across all stages of the savings life cycle. We are a growing and sustainable business with a clear purpose - helping people secure a life of possibilities.
Our businessMain brands
HERITAGE
Our Heritage business, where we are the market-leader, is focused on the safe and efficient management of insurance policies. It comprises products that are no longer actively marketed to new customers and where we have stepped in as the custodian of these policies. We have built this business through the consolidation of over 100 legacy insurance brands and have a proven track record of improving customer outcomes.
OPEN
Our Open business operates products that are actively marketed to new and existing customers.
The Open business comprises five separate business units including our Workplace pensions and Customer Savings & Investments ('CS&I') units both of which operate under the Standard Life brand, the Retirement Solutions unit that includes both vesting annuities and our Bulk Purchase Annuity ('BPA') business, as well as our over-50s brand 'SunLife' and our European business operating in Ireland and Germany.
Read more about our operating structurepage 22
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Phoenix Group Holdings plc Annual Report & Accounts 2020
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Phoenix Group Holdings plc published this content on 29 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 17:36:06 UTC.