Phoenix Group's SII surplus rises by £0.6bn reflecting subordinated bonds issuance

Written by Adam Cadle

25/08/2017

Phoenix Group's Solvency II surplus has risen by £0.6bn between 31 December 2016 and 30 June 2017.

Its latest financial results, show that the Solvency II surplus rose from £1.1bn to £1.7bn reflecting the issuance of subordinated bonds during 2017.

In December 2015, Phoenix Group was granted the PRA's approval for use of its Internal Model to assess capital requirements.

Following the 2016 acquisitions of the AXA and Abbey Life businesses, the group obtained the PRA's approval to incorporate the acquired AXA businesses within the scope of the group's internal model in March 2017.

The capital assessment of the Abbey Life business remained on a standard formula basis as at 30 June 2017. Therefore, the Solvency II position of the group at that date is based partially on the group's internal model and partially on standard formula.

Phoenix Group's operating profit of £215m was recorded in H1 2017 (H1 2016: £107 million).

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