The Group s strength is derived from the intelligent combination and leverage of both the Phoenix Life and Ignis Asset Management businesses.

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1 Last updated 1 February 2013 MEDIA FACTSHEET PHOENIX GROUP Phoenix Group is the UK s largest specialist closed life and pension fund consolidator with over 6 million policyholders and 71.6 billion* of assets under management. As a closed life business consolidator, Phoenix focuses on the efficient run-off of existing policies, maximising economies of scale and generating capital efficiencies through operational improvements. Ignis focuses on the management of multi-asset funds, delivering strong investment performance and high quality service to its clients. The Group s strength is derived from the intelligent combination and leverage of both the Phoenix Life and Ignis Asset Management businesses. Our mission To improve returns for Phoenix policyholders and Ignis customers and deliver value for shareholders. Our vision To be recognised as the industry solution for the safe, innovative and profitable decommissioning of closed life funds and as a specialised global asset manager. *As at 30/06/2012 PHOENIX GROUP CUSTOMER FACING LIFE COMPANIES The Group includes: Phoenix Life Limited Phoenix Life Assurance Limited National Provident Life Limited Scottish Mutual International Limited 1

2 WHAT MAKES US DIFFERENT? Because closed funds represent the whole of our life business, we are able to focus all our energy and expertise on improving their performance without getting distracted by the need to win new customers. Our highly focused area of specialisation allows us to recruit the very best and most experienced individuals in the field, particularly in niche areas such as with-profits funds. We are a consolidator that is in the closed funds market for the long term. We believe that closed funds will be an issue for decades to come, and policyholders need and deserve a secure, stable solution. We are making substantial investments, for example in IT systems and customer communications initiatives, to ensure we deliver the very best service. We represent the collective interests of closed-fund policyholders. OUR CORPORATE STRATEGY Maximise business performance and value; Improve customer outcomes; Sustain a robust and scalable business model; Be a place where people want to work; Build an industry-wide reputation; Pursue value-adding acquisitions. PHOENIX GROUP OPERATING STRUCTURE Our structure is aligned to the market sectors in which we operate. The Group has two core segments: life assurance Phoenix Life; and asset management Ignis. In addition, our Group functions provide support and coordination for the delivery of the Group s strategic initiatives. 2

3 FINANCIAL HIGHLIGHTS Operating companies cash generation 810m (31 December 2011) 734m (31 December 2010) Group MCEV 2,118m (31 December 2011) 2,104m (31 December 2010) Group IFRS operating profit 387m (31 December 2011) 373m (31 December 2010) Asset management IFRS operating profit 46m (31 December 2011) 46m (31 December 2010) Group assets under management 72.1b (31 December 2011) 69.6b (31 December 2010) IGD capital surplus (estimated) 1.3b (31 December 2011) 1.0b (31 December 2010) Gearing ratio 46% (31 December 2011) 52% (31 December 2010) The interim dividend for 2012 was 21 pence, and was paid to shareholders on 4 October As at 31 December 2011 there were just over 6.5 million policies in force across the Group. This figure includes: Nearly 3 million whole-of-life and endowment policies Over 2 million pensions Nearly 700,000 annuities in payment Over 400,000 pure protection policies (term assurances, critical illness and income protection) Nearly 170,000 investment bonds Split across: Over 2.8 million Non-Profits policies. (This includes policies which were originally With-Profits but which have been paid-up and no longer receive bonuses) Almost 1.5 million Traditional With-Profits policies Over 1.2 million Unit Linked and Index Linked policies Almost 1 million Unitised With Profits policies 3

4 IGNIS ASSET MANAGEMENT Ignis Asset Management manages Phoenix Group s substantial assets, providing dedicated fund management expertise for Phoenix Life's 6 million customers. Ignis has 73.6 billion* of assets under management and distributes a range of global investment services to institutional, wholesale and retail clients. Investment performance, and the risk taken to achieve it, is at the heart of the business model. Ignis believes that investment teams operating in a pragmatic way are best placed to meet, or exceed, clients performance needs. These teams, each focused on a particular investment capability, are able to devise their own process while sharing a common pool of resources. The teams are: Fixed Income, Equities, Real Estate, Advisors (a specialist fund of funds including alternatives team), and Solutions (liability driven investment, asset liability management and related risk mitigation). *Source: Ignis at 30/06/2012 (including 10.4bn of stock lending collateral). A BRIEF HISTORY OF THE GROUP The Phoenix Group of companies can trace its history back to 1782, with the foundation of Phoenix Life Assurance. The modern-day group was founded in 1990 when Pearl was acquired by the Australian financial giant AMP and in 2003, Pearl, NPI and London Life de-merged from AMP to become part of a new UK company, HHG. In April 2005, Pearl Group Limited was acquired by Sun Capital Partners and TDR Capital from HHG. In March 2006, Pearl Group Limited created an in-house asset and risk management business, Axial. (Now renamed Ignis Asset Management). In May 2008, Pearl Group Limited acquired the Resolution plc companies (Phoenix Life Limited, Scottish Provident Limited, Scottish Mutual Assurance Limited & Resolution Asset Management). In September 2009, Pearl Group (formerly Liberty Acquisition Holdings (International) Company) became the ultimate holding company of the Pearl Group of companies. On 15 March 2010, Pearl Group changed its name to Phoenix Group Holdings. Phoenix Group Holdings has a Premium Listing on the London Stock Exchange, and is a member of the FTSE 250 index. 4

5 LEADERSHIP Executive Management Team Clive Bannister Jim McConville Fiona Clutterbuck Alan Jones Jane MacLeod Mike Merrick Jean C Park Chris Samuel Group Chief Executive Group Finance Director Head of Strategy, Corporate Development and Communications Group HR Director General Counsel Chief Executive, Phoenix Chief Risk Officer Chief Executive, Ignis Asset Management Phoenix Group Holdings Board Sir Howard Davies Clive Bannister Jim McConville Ian Ashken René-Pierre Azria David Barnes Tom Cross Brown Charles Clarke Ian Cormack Manjit Dale Isabel Hudson Alastair Lyons Hugh Osmond David Woods Chairman & Nomination Committee Chairman Group Chief Executive Group Finance Director & Investment Committee Chairman & Remuneration Committee Chairman Senior Independent Director & Audit Committee Chairman & Risk Committee Chairman 5

6 CUSTOMER FOCUS What motivates me is that I work for a Group that genuinely cares about making a difference for customers. Phoenix is determined to set standards for the industry, for example in areas such as finding missing policyholders. Susan McInnes, Customer Director Our Treating Customers Fairly ( TCF ) strategy contains the following goals: To offer our customers security and opportunities for growth; To drive new standards and behaviours in the management of closed book / run-off businesses; To deliver the behaviour which a properly informed and prudent customer is reasonably entitled to expect of us; and to deal with all our customers honestly, openly, competently and with integrity; To have an informed understanding of our customers needs; To be committed to helping our customers get the most out of their relationship with us. Customers remain at the heart of what we do and providing a fair and helpful service is very important to us. We understand that complaints will sometimes happen; and when they do, we aim to rectify them as quickly as possible. If a customer does need to complain, we believe it is important to take ownership of the issue and that during the investigation our customers are kept informed and assured that we are taking steps to fix the problem. We publish our complaints results on our Group website. In the latest Financial Ombudsman statistics: Pearl Assurance has moved to an improved overturn rate of 23% (01/01/ /06/2012) compared to 25% (01/07/ /12/2011). Phoenix Life Limited s overturn rate was 38% (01/01/ /06/2012) compared to 34% (01/07/ /12/2011). This is against an industry average of 51% (01/01/ /06/2012). Overall the position of Phoenix Group shows that we are ranked 21st out of 58 companies in our peer group. Complaints per 1000 policies measure for the period (01/01/ /06/2012) was 1.46 compared to 1.31 (01/07/ /12/2011). All Phoenix business is now reported as one with regards to the Origo statistics. For 2012: Processing a Pension to Annuity transfer, from activation of the request by a receiving provider, through to them confirming they have received monies, we report 12.4 calendar days. Processing a Pension to Pension transfer, from activation of the request by a receiving provider, through to them confirming they have received monies, we report 11 calendar days. 6

7 OUR PEOPLE The Group employs around 1400 people split across Phoenix Life, Ignis and Group. Our people are our most important asset and they are vital to the success of our business. Building an engaged, productive workforce provides significant opportunities to enhance our business performance, benefiting customers, shareholders and employees alike. The Human Resources function has continued to monitor employee metrics around turnover, sickness and training. We track the following employee metrics to help us compare ourselves to industry benchmark, and previous years. Staff turnover is down compared to our last report and we are pleased to report we are now below the industry average of 8.7% for employees leaving voluntarily. Staff Turnover (employees choosing to leave voluntarily) 7.5%* Annual New Starter Turnover (number of employees leaving voluntarily within 12 months of starting) 10%* Percentage of days lost through sickness 1.4%* Percentage of employees sponsored on a professional qualification 22.6%* *All 2011 figures At Phoenix Group we believe that employee engagement helps drive business performance, and so increases value for our policyholders and shareholders. As a mark of recognition of the success of our engagement programme, Phoenix Group and Phoenix Life were short-listed for the Marketing Society s Employee Engagement Award, and won the 2011 Strategic Communications Management (Melcrum) Award for Excellence in Employee Engagement. Phoenix Group is included in Britain s Top Employers This certification is awarded only to organisations that meet the highest standards in Human Resources policy benchmarking. The companies awarded with this certification have all been independently recognised as being amongst the best companies to work for in the UK was a year of considerable change for the Group. We were therefore delighted with our yearend employee survey results, which we directly use to measure our level of employee engagement. For the first time, all parts of the Group participated in the same survey at the same time. Our overall engagement index score was 74% with a response rate of 93%. Phoenix Life and Group returned an engagement index score of 78%, an increase of 1% on 2010, and, for every single question, were at or above Financial Services Benchmark (or Private Sector Benchmark where a Financial Services comparison is not available). This was the second year that Ignis had held an engagement survey, and the engagement index score for this division increased to 68%, from 60% in

8 PHOENIX IN THE COMMUNITY During 2011 just under 100,000 was donated to charities from the Phoenix Group. Our focus has been on selecting and supporting charities which benefit the local communities in which we live and work, and those nominated by our staff. In addition to the above donations made by the Group, over 20,000 was raised for charities selected by employees through fundraising activities organised on our premises. Our Group website at provides further details on a number of these events. CONTACT DETAILS Shellie Wells Head of Media Relations Direct line: +44(0) Mobile: +44(0) shellie.wells@thephoenixgroup.com. 8