Editing Phoenix Group Holdings plc (section)

== Market ==
To understand Phoenix Group’s market opportunity, let’s look at its '''Total Addressable Market (TAM)''', '''Serviceable Available Market (SAM)''', and '''Serviceable Obtainable Market (SOM)''', specifically in the context of its primary business lines, which include '''closed-book life insurance''', '''open-book insurance''', '''Bulk Purchase Annuities (BPAs)''', and '''retirement solutions'''.

=== 1. '''Total Addressable Market (TAM)''' ===

* '''Definition''': The '''TAM''' is the total revenue opportunity available if Phoenix Group could achieve 100% market share in all its target sectors.
* '''Market Size''': The TAM for Phoenix includes:
** The '''global life insurance market''', especially in regions with significant closed-book insurance business (UK, Europe, some parts of North America).
** The '''global pension market''', as companies seek to offload pension liabilities via Bulk Purchase Annuities (BPAs).
** The '''global retirement solutions and wealth management market''', given the increasing demand for retirement products as populations age.
* '''Estimated TAM''': For Phoenix, the TAM is likely in the '''trillions''' in GBP, as the global life insurance market alone is estimated to be worth several trillion dollars annually. However, for closed-book management and pension buyouts specifically, estimates suggest an addressable market in the '''hundreds of billions''', particularly in Europe and North America, where regulatory and aging demographics drive demand.

=== 2. '''Serviceable Available Market (SAM)''' ===

* '''Definition''': The '''SAM''' represents the portion of the TAM that Phoenix Group could realistically service, given its specific focus and operational capabilities.
* '''Market Focus''':
** '''UK and European Closed-Book Life Insurance''': Phoenix Group is one of the largest consolidators of closed-book policies in the UK and Europe. The closed-book market in Europe alone is estimated to hold '''£300 billion to £400 billion''' in assets under management.
** '''Bulk Purchase Annuities (BPA)''': In the UK, the BPA market has seen significant growth, with estimates suggesting it’s worth around '''£30 billion annually'''. As more companies offload pension liabilities, this market is expected to grow.
** '''UK Retirement and Wealth Solutions''': Given its acquisition of Standard Life and expansion into the open-book market, Phoenix can also tap into the retirement solutions market, worth an estimated '''£1 trillion''' in the UK alone.
* '''Estimated SAM''': For Phoenix, the SAM is likely in the '''hundreds of billions of pounds''', focusing primarily on the UK and European closed-book life insurance market, BPAs, and retirement solutions.

=== 3. '''Serviceable Obtainable Market (SOM)''' ===

* '''Definition''': The '''SOM''' is the portion of the SAM that Phoenix Group can realistically capture, given competition, regulatory constraints, and its existing market share.
* '''Competitive Position''':
** '''Closed-Book Consolidation''': Phoenix already holds a significant market share in the UK closed-book insurance market. Its scale, expertise, and established relationships position it to capture a substantial portion of this market. Realistically, Phoenix could maintain a '''10-20% share''' of the UK and European closed-book market, equating to '''£30-60 billion'''.
** '''BPAs''': Phoenix is actively growing its presence in the BPA market. Given competition from other insurers like Legal & General, Phoenix might capture '''5-10% of the BPA market''', which could mean around '''£1.5-3 billion annually'''.
** '''Retirement and Wealth Solutions''': This is a competitive market with players like Aviva, Prudential, and Standard Life. Phoenix’s SOM here could be around '''5%''', or '''£50 billion''', within the UK retirement solutions market.
* '''Estimated SOM''': Combining these factors, Phoenix’s SOM might realistically be between '''£80 billion to £120 billion''' across its primary markets. This includes substantial market share in closed-book management, a growing foothold in BPAs, and a smaller but strategic presence in retirement solutions.

=== Summary of TAM, SAM, and SOM for Phoenix Group: ===
{| class="wikitable"
!Metric
!Market Size
!Key Focus Areas
|-
|'''TAM''' (Total Addressable Market)
|'''£1+ trillion'''
|Global life insurance, pensions, retirement solutions
|-
|'''SAM''' (Serviceable Available Market)
|'''£200-400 billion'''
|UK and European closed-book, BPAs, UK retirement solutions
|-
|'''SOM''' (Serviceable Obtainable Market)
|'''£80-120 billion'''
|UK and European closed-book, BPAs, retirement solutions in the UK
|}
Phoenix’s strengths in '''closed-book consolidation''', its expanding '''BPA business''', and '''retirement solutions''' provide it with a substantial and accessible market within the broader insurance and retirement sector. This focus allows it to capitalise on '''predictable cash flows''' from closed books and emerging opportunities in BPAs, while building a foothold in the growing retirement market.