Published by Global Banking and Finance Review
Posted on September 8, 2025
(Reuters) - British insurer Phoenix Group said on Monday it would rebrand as Standard Life in March 2026, and reported a larger-than-expected decline in book value driven by market fluctuations, sending its shares down as much as 6.4%.
Phoenix, the UK's largest long-term savings and retirement group, bought the Standard Life brand in 2021 following a deal three years earlier to buy Aberdeen's insurance arm.
Phoenix's reported shareholders' equity fell nearly 59% to 768 million pounds ($1.04 billion) in the first half ended June 30, missing estimates from analysts at RBC and JPMorgan.
Book value, or shareholders' equity, is a key financial gauge of a company's ability to absorb risks and is a vital indicator of balance sheet strength. Declines may erode investor confidence, even if profits are rising.
Weak profit after tax and reported shareholders' equity "could take some of the shine off the strong operating performance today, with more negative investment variances than we expected," JPMorgan analysts said, adding that Phoenix's rebranding, however, was a positive.
Phoenix logged 451 million pounds of interim adjusted operating profit in the half-year, compared with 360 million pounds reported in the year-ago period, helped by growth in its pensions and savings businesses.
"Changing our name from Phoenix Group Holdings plc to Standard Life plc in March 2026 brings our most trusted brand to the forefront," Phoenix CEO Andy Briggs said, adding that the group was "firmly" on track to meet its 2026 targets.
British pension insurance deals hit 45 billion pounds in 2024 and are forecast to reach up to 50 billion pounds this year, led by a rush from companies to offload final salary pension risks.
Insurers including Phoenix have expanded in deals for corporate pensions, known as bulk annuities.
($1 = 0.7401 pounds)
(Reporting by Ankita Bora in Bengaluru and Iain Withers in London; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
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