3rd Dec 2020 09:17
(Alliance News) - Phoenix Group Holdings PLC on Thursday said its shareholder capital coverage ratio remains "robust" and set net-zero carbon targets for 2050.
The FTSE 100-listed long-term savings and retirement business said solvency II surplus at September 30 increased 14% to GBP5.0 billion from GBP4.4 billion at June 30.
The London-based company reported a shareholder capital coverage ratio of 159% as at September 30, compared to 150% at June 30. This is at the mid-point of the Phoenix Group's target range of 140% to 180%.
At September 30, 98% of Phoenix Group's shareholder debt portfolio was investment grade, with 21% being rated as BBB and 2% rated as BBB-.
Chief Executive Andy Briggs said: "Our balance sheet remains resilient, underpinned by our high-quality portfolio of assets and unique approach to risk management, and our shareholder capital coverage ratio of 159% remains robust."
Phoenix Group also announced that it has committed to becoming net-zero carbon by 2050.
"We also recognise that Phoenix has an important role to play in society and today we are announcing our commitment for our operations to become net-zero carbon by 2025 and for our investment portfolio to do so by 2050. Sustainability is at the core of our purpose and reducing our environmental impact will be integral to delivering long-term value for all of our stakeholders," Briggs said.
This will see the company increase its investment in assets which support the transition to a low carbon economy as well as engaging with investee companies to promote alignment with the Paris Agreement.
"We will reduce or ultimately eliminate our exposure from companies that show little progress following sustained engagement," Phoenix Group said.
Phoenix Group shares were down 0.1% at 736.00 pence each in London on Thursday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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