MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Phoenix Grp: Solid Results, No Investment Blow-ups To Worry Credit

FINANCIALS
Phoenix Group FY23 results (PHNX LN) look solid from a credit perspective and the lateral to the major lifecos is solid, too. There’s little here to drive a change in spreads but some may have feared a Swiss Life-style issue around CRE in the investments book, which appears absent.

  • Key credit metrics: solvency II ratio is 176% (from 180% at Jun-23, in line with consensus) with the nominal surplus static at GBP3.9bn. Total cash generation was GBP2bn (from GBP0.9bn at Jun-23, so a decent 2H) and the hit from consumer duty provisioning was just GBP70m. So solid all round.
  • Operating performance: 2H23adjusted PBT is GBP351m (cons: 324m) and the bottom line is back in profit after the loss-making first half. The lateral here is marginally positive for the life company peers – positively there’s nothing here to indicate stress from rising rates on the investment books nor specific blow-ups (e.g. CRE exposure for shareholders).
  • Outlook: key here is a “new capital allocation framework” which, in contrast to comments about “the capacity to raise debt” with 1H23 results, now indicates “further deleveraging”.
Conf call 0930 (London time) at: https://storm-virtual-uk.zoom.us/webinar/register/.../registration
Credit BulletsHomepagemarkets-real-timeCreditBank Of England (BOE) Market NewsBulletUK

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.