Editing Phoenix Group Holdings plc (section)

== Operations ==

=== How did the idea of the company come about? ===
Phoenix Group Holdings was created with the aim of acquiring and managing closed life insurance and pension funds. Founded in 2009, it evolved from the Phoenix Assurance Company, which had traditionally provided life insurance. The modern group focused on acquiring legacy insurance portfolios—companies that no longer wrote new policies but still had substantial liabilities. By acquiring underperforming insurers, Phoenix aimed to improve efficiency, optimise capital, and unlock value from these closed books, growing into a major consolidator in the UK life insurance sector.

=== What's the mission of the company? ===
The mission of Phoenix Group Holdings is to deliver long-term value for its shareholders, policyholders, and other stakeholders by efficiently managing and growing closed life insurance and pension businesses. The company focuses on maximising the value of legacy insurance portfolios through operational improvements, capital optimisation, and the responsible management of policyholder liabilities. Their goal is to ensure financial security for policyholders while achieving sustainable, profitable growth for investors.

=== What are the main offerings of the company? ===
Phoenix Group Holdings primarily offers closed-book life insurance and pension solutions. Their key offerings include:

# '''Life Insurance:''' Managing legacy life insurance policies that are no longer open to new customers, focusing on optimising the value of existing portfolios.
# '''Pension Schemes:''' Overseeing pension funds and annuities for individuals and institutions, ensuring they are managed efficiently.
# '''Asset Management:''' The company offers investment management services for the assets backing its insurance and pension liabilities.
# '''Investment and Capital Management:''' Phoenix Group aims to enhance the value of its acquired portfolios through strategic capital management, risk optimisation, and operational efficiency.

These offerings are centered around managing closed insurance and pension books, with a focus on long-term value creation for policyholders and investors.

=== What makes the offerings unique? ===
What makes Phoenix Group Holdings' offerings unique is their focus on managing closed-book insurance and pension portfolios, businesses that no longer write new policies but still have significant liabilities. This specialisation is backed by key facts:

# '''Specialisation in Closed-Book Management:''' Phoenix Group is one of the largest consolidators of closed life insurance and pension books in the UK, managing over £300 billion in assets. It has acquired major portfolios, including from Standard Life (2018) and ReAssure (2020), demonstrating its leadership in this niche market.
# '''Operational Efficiency:''' Phoenix has a proven track record of improving operational performance. Following the Standard Life acquisition, the company implemented cost-saving measures that led to over £50 million in annual savings. Additionally, its £1 billion cost-saving program announced in 2020 highlights its focus on streamlining operations and improving efficiency across its legacy portfolio.
# '''Capital and Liability Optimisation:''' Phoenix utilises advanced capital management techniques, such as those seen in the £1.1 billion pension scheme buyout from Standard Life, which helped reduce risk and unlock value. The group also manages liabilities efficiently through Solvency II capital management, ensuring long-term sustainability and optimised returns.
# '''Focus on Long-Term Stability:''' Phoenix’s commitment to long-term financial security for policyholders is reflected in its 200% solvency ratio, well above regulatory requirements. The group also reported 9% growth in operating profit in 2023, alongside a consistent dividend track record, underscoring its ability to provide steady returns to shareholders while meeting policyholder obligations.

These factors combine to make Phoenix Group’s offerings distinct, focusing on operational efficiencies, capital optimisation, and long-term stability in the management of legacy insurance and pension portfolios.

=== From which place(s) are the offerings able to be purchased? ===
Phoenix Group's offerings are primarily available to existing policyholders and pension plan participants through their legacy insurance portfolios. Since the company focuses on managing closed books (policies no longer open for new customers), its products are not available for purchase by new clients. Instead, Phoenix manages and services existing life insurance and pension policies that were previously sold by acquired businesses.

Their offerings are available in the UK, where they have a significant presence, and the company’s services are accessible to policyholders through their digital platforms, customer service teams, and financial advisors. Additionally, Phoenix Group has operations in various European markets through acquired businesses. However, new policy purchases are not part of their current business model.

=== From which place(s) are the offerings promoted? ===
Phoenix Group's offerings are primarily promoted in the UK and Ireland, where it has a strong presence. The company's promotional efforts focus on:

# '''Existing Customers:''' Phoenix promotes its services and offerings to current policyholders through direct communications, customer support, and digital channels, emphasising the management of legacy insurance and pension portfolios.
# '''Investor Relations:''' Phoenix also promotes its financial products and services to investors, showcasing its strategy of acquiring and managing closed books, through annual reports, investor presentations, and shareholder updates.
# '''Acquired Businesses:''' The company may also promote its offerings indirectly through the brands of acquired insurers, such as Standard Life and Scottish Widows, which still serve policyholders under the Phoenix Group umbrella.
# '''Digital Platforms:''' Phoenix Group also uses its websites and digital platforms to communicate with both policyholders and investors, promoting its financial management strategies and policyholder services.

Overall, promotion is largely directed at existing stakeholders, given the closed-book nature of its business model.

=== What's the current strategy of the company? ===
Phoenix Group's current strategy focuses on sustainable growth, capital optimisation, and maximising the value of legacy insurance and pension portfolios. Key aspects of the strategy include:

# '''Acquisitions and Consolidation:''' Phoenix continues to grow by acquiring and managing closed-book life insurance and pension portfolios, enhancing its scale and operational efficiency. They focus on integrating acquired businesses, such as Standard Life, and improving their profitability.
# '''Operational Efficiency:''' The group aims to optimise its cost base, improve capital efficiency, and maximise returns from its existing portfolio of life insurance and pension policies. This includes enhancing digital services and improving customer experience for policyholders.
# '''Responsible Capital Management:''' Phoenix focuses on managing its capital efficiently to support growth and provide attractive returns to shareholders. This includes maintaining a strong balance sheet and ensuring adequate liquidity.
# '''Sustainability and Responsible Investment:''' The company is increasingly focused on aligning its operations with sustainable practices, including responsible investing, to meet evolving regulatory requirements and enhance long-term value.
# '''Customer-Centric Approach:''' While not writing new policies, Phoenix aims to deliver strong value for existing policyholders by managing their policies effectively, providing transparent communications, and focusing on delivering on the promises made to them.

Overall, Phoenix Group's strategy is centered around strengthening its position as a leading consolidator of closed life and pension books, while ensuring long-term growth and value creation for both policyholders and investors.