Losses Widen and Shares Drop Amidst Lowered Expectations

  • Phoenix Group Holdings reports wider losses for H1 2024
  • Shares down more than 3% after market open in London
  • Pretax loss of £669m compared to £372m in the same period last year
  • Adjusted operating pretax profit at £360m, beating expectations
  • Total income up to £12.33bn from £5.80bn
  • Operating cash generation of £647m, ahead of consensus estimate
  • Solvency II surplus at £3.5bn, below expectations
  • Shareholder capital coverage ratio at 168%
  • CEO Andy Briggs: ‘on track to deliver all financial targets’
  • Interim dividend declared at 26.65p

Phoenix Group Holdings has reported a wider pretax loss for the first half of 2024 compared to the previous year, leading to a drop in its shares. The company’s stock was the worst performer in the FTSE 100 blue-chip index after reporting a £669 million ($878m) pretax loss for the six months ended June 30, up from a £372 million restated loss in the same period last year. The adjusted operating pretax profit came in at £360 million, surpassing expectations of £348 million. Total income increased to £12.33 billion from £5.80 billion, while its insurance service result rose to £258 million from £142 million. Operating cash generation was £647 million, beating the expected £566 million and representing a 19% year-on-year increase due to business and recurring management actions. However, the solvency II surplus stood at £3.5 billion, below expectations of £3.6 billion. CEO Andy Briggs remains confident in meeting all financial targets.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Phoenix Group Holdings’ financial performance for the first half of 2024, including losses, stock performance, operating profit, total income, cash generation, solvency II surplus, and CEO comments. It also includes analysts’ opinions on the results. The information is relevant to the main topic and not presented as a universally accepted truth or personal perspective.
Noise Level: 4
Noise Justification: The article provides relevant information about Phoenix Group Holdings’ financial performance and its CEO’s statement on the progress made in the first half of 2024. It includes specific numbers and comparisons to previous years, as well as an explanation for some negative variances. However, it could benefit from more analysis or context on the implications of these results for the company and the industry.
Public Companies: Phoenix Group Holdings (PHNX), Citi (C), RBC Capital Markets (RBC)
Private Companies: SunLife Limited
Key People: Andy Briggs (Chief Executive), Mandeep Jagpal (Analyst at RBC Capital Markets), Dawid Pych (Associate at RBC Capital Markets), Alexander Evans (Analyst at Citi)

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Financial Relevance: Yes
Financial Markets Impacted: Phoenix Group Holdings shares, FTSE 100 index
Financial Rating Justification: The article discusses the financial performance of Phoenix Group Holdings, a life insurance and pensions consolidator, and its impact on the company’s stock price and the FTSE 100 index.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in this article is more than 3% as the stock traded down more than 3% shortly after market open in London at 557 pence and was the worst performer in the FTSE 100 blue-chip index.
Sector: Insurance
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com