Phoenix : acquires £300m equity release portfolio

PHOENIX GROUP ACQUIRES £300M EQUITY RELEASE PORTFOLIO

• Consolidates Phoenix's position among the largest equity release funders
• Equity release is an important option for people planning their finances later in life, including the increasing number of retirees who have not paid off their mortgage
• By purchasing this portfolio it continues to provide security for homeowners
• Acquisition aligns to Phoenix's strategy to create a diversified illiquid asset portfolio that supports growth in the bulk purchase annuity market

Today, Phoenix Group announces it has purchased a portfolio of equity release mortgages from Just Retirement Limited, part of FTSE 250 retirement specialist Just Group plc, to the value of circa £300 million. These are mortgage backed assets across the UK and this transaction further cements Phoenix's position as one of the largest funders and managers of equity release assets in the UK.

In providing funding for the portfolio, Phoenix is securing the long term retirement plans put in place by the borrowers, aged 55 plus, ensuring they are able to access the equity in their family home without the need to move. Customers will not need to take any action as their mortgage will not change.

The acquisition was led by the team of experts in Phoenix's Retirement Solutions business which specialises in equity release and bulk purchase annuities. It is headed up by its Managing Director Tom Ground who has been driving forward the strategy in these markets.

Retirement Solutions is part of Phoenix's growing Open business led by Andy Curran, CEO Savings & Retirement, UK and Europe, who comments: 'Equity release is an important option for many people when it comes to meeting their financial planning needs later in life. It is a growing market that we fully support and know well, Phoenix have been active as a funder in the market since 2016. We're delighted to have acquired this portfolio and to be securing the retirement plans for more borrowers. This is a testament to the strength and expertise of our Retirement Solutions team led by Tom Ground and you should expect to see more activity from us in the equity release space in the coming months and years.

This purchase is consistent with our Group vision of helping people on their journey to and through retirement. Alongside pension savings, equity release is a valuable part of that toolkit for a growing number of people. This portfolio purchase is also supportive of our strategy to grow our Bulk Purchase Annuity business.'

Atotal of £1.17bn of property wealth in the UK was unlocked by over-55 homeowners in the second quarter of 2021 according to the Equity Release Council. They also report that one in five (20%) people in their sixties are already using pension savings to pay off their mortgages, despite concerns over exhausting their pots too rapidly. Equity release mortgages provide them with more options.

Phoenix has been active in the growing equity release market since 2016 and at the end of June 2021 about a third of its £10.7bn diversified illiquid asset portfolio comprised equity release mortgages with an average AA rating.

Phoenix's illiquid portfolio is well diversified across asset types, sub-sectors and regions across the UK, and it has a strong focus on sustainable investments that are helping to build back better and greener. In addition to its equity release mortgage portfolio, its illiquid portfolio comprises of private placements, UK local authority loans, commercial real estate and infrastructure debt.

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Enquiries

Dan White

Phoenix Group

[e-mail]

07971 952921

Notes to editors

About Phoenix Group

Phoenixis the UK's largest long-term savings and retirement business, with £300 billion of assets under administration and c.13 million customers.

We are a growing and sustainable business with a clear purpose - helping people secure a life of possibilities. This means taking responsible and sustainable investment decisions, and using our presence and voice to advocate on behalf of the UK's savers. We understand that our scale and expertise means that we have an important role to play for our customers, colleagues and our communities.

As life expectancy continues to increase and the pension landscape continues to shift, we will continue to be a safe and dependable ally in the journey to and through retirement for millions of customers, by providing the right guidance and products, at the right time, to support the right choices. We offer a broad range of products for people across all stages of the savings life cycle.

Our strategy focuses on delivering long term, sustainable value and, to fulfil our purpose, focuses on five key areas to ensure we respond to changing customer needs, manage our capital position well, create value, inspire our people, and put sustainability at the heart of our business.

Phoenix is a FTSE 100 company and we feature in the FTSE100 ESG Select Index. In 2020 we committed to our operations beingnet zero carbonby 2025 and our investment portfolios by 2050. We are playing an active role in helping to build back better and greener as we invest for the future. We are aLiving Wage Employer and recognised as a Carer Positive Exemplary Employer for offering the best support to colleagues who are carers.

Linkedin: PhoenixGroup-UK

Twitter:@PhoenixGroupUK