FINANCIALS: Phoenix Results 16-Sep; Deleveraging, Succession, Divestments

Phoenix Group (PHNXLN: BBB+) is reporting 1H24 results on 16-Sep. We’d expect updates on the group’s deleveraging plan, CFO succession and divestments including that of Sun Life.

• FY23 results looked solid from a credit perspective and were marginally ahead of expectations. The equity was up 8% on the day, perhaps linked to the lack of negative news on CRE exposures and/or comments about a “new capital allocation framework”.
• Company made its debut RT1 issue in June and indicated later that month that it had completed the initial phase of its deleveraging plan, aiming to reduce debt by EUR500m by end-26. There have also been reports it may sell Sun Life to focus more fully on savings and retirement (rather than protection). The CFO stepped down on 8-Sep.
• The spread on its single index bond (PHNXLN 4 3/8 01/24/29) has come in 144bp this year but most of that in 1Q24 though it’s continued to outstrip €IG insurers more recently. The equity has, however, underperformed peers this year.
• Earnings estimates have been revised higher in the mid-teens percent since last results, even with revenue expectations lower for this year.

Results are due at 0700 (London time) with a conf call at 0930 at: https://storm-virtual-uk.zoom.us/webinar/register/WN_7VBBqJ07RMWM6zkWgq2AOQ#/registration