PRLG Pearl Grp (DI)

 

TIDMPRLG 
 
RNS Number : 3318H 
Pearl Group 
18 February 2010 
 

                               Pearl Group update 
 
 
Pearl Group is scheduled to announce its preliminary results for the year to 31 
December 2009 on 31 March 2010.  Ahead of that announcement, Pearl Group wishes 
to provide an update on its progress on a number of important points. 
 
·    2009 operational cash generation to exceed target of GBP500 million 
·    Continued preparations for a Premium Listing on the London Stock Exchange 
in H1 
·    No intention to raise capital at time of Premium Listing 
·    Appointment of three independent non-executive Directors 
·    Intention to change name to Phoenix Group Holdings 
·    Appointment of corporate brokers 
 
Ron Sandler, Chairman of Pearl Group, said: 
 
"I am pleased to report that we have made significant progress on a number of 
fronts to continue to strengthen our financial position and governance and to 
support our stated goal of achieving a Premium Listing on the London Stock 
Exchange.  I am delighted to welcome Charles Clarke, Isabel Hudson and David 
Woods to the Pearl Group Board.  They each bring a wealth of skills and 
experience.  We look forward to working with them and benefiting from their 
contribution. 
 
"In addition, we are announcing today our intention to change the name of the 
Group. The reconstruction last year provided the Group with fresh momentum, and 
the decision to change the name is a reflection of this. The Phoenix brand has 
been associated with life assurance for over two hundred years, and carries a 
proud legacy. It will serve us well as we continue on our chosen path of 
consolidating closed life funds in the UK." 
 
Trading update 
 
In the Q3 Interim Management Statement, Pearl Group stated that cash generation 
from its subsidiaries was on track to achieve the full year target of 
approximately GBP500 million.  While the audit of our 2009 results will not be 
complete until the announcement of our preliminary results on 31 March 2010, we 
can confirm that Pearl Group's strong performance in the second half of the year 
has resulted in cash generation from its subsidiaries in excess of GBP500 
million for 2009. 
 
Pearl Group remains on track to pay the full year 2009 dividend of EUR0.50 per 
share, pro rated from 2 September 2009. 
 
Pearl Group is in constructive discussions with its Tier 1 Bondholders with a 
view to finding an agreement that would be acceptable to all its stakeholders. 
However, there can be no assurance at this point that a solution will be found 
that would resolve all outstanding issues and provide certainty in respect of 
the conditions under which coupons would be paid in the future. 
 
Jonathan Moss, Pearl Group CEO said: 
 
"The underlying operating companies have delivered strong cashflows in 2009 and 
met the plans set out for the business, which demonstrates the cash generative 
nature and longer-term predictability of the business model.  We recognise the 
importance to investors of providing greater visibility of cashflows and the 
extent to which this facilitates understanding of our complex structure and 
makes the underlying value of the group more transparent. 
 
"Work continues in pursuit of a Premium Listing on the London Stock Exchange. 
The Group does not intend to raise additional capital at the time of the Premium 
Listing that is being targeted for the first half of 2010." 
 
Appointment of independent non-executive Directors 
 
The Board is pleased to announce that Charles Clarke, Isabel Hudson and David 
Woods have been appointed to the Board as independent non-executive Directors. 
The Group is also well advanced with plans to appoint a fourth new independent 
non-executive Director, who will become Chairman of the Audit Committee. 
 
Charles Clarke 
 
Charles Clarke is a Jersey resident Chartered Accountant who spent some 30 years 
with KPMG, latterly as Senior Partner of the Channel Island firm. Since retiring 
from KPMG in 2005 he has established an offshore governance consultancy and 
accepted a number of non-executive Director appointments, including SG Hambros 
Bank where he chairs the Audit Committee. Charles will serve on the Audit 
Committee. 
 
Isabel Hudson 
 
Isabel Hudson is an insurance professional and has been an Executive Director of 
both Eureko BV and Prudential Assurance.  She is a non-executive Director of the 
Pensions Regulator and QBE.  Isabel will serve on the Risk Committee and the 
Remuneration Committee. 
 
David Woods 
 
David Woods is an actuary by training and has been Managing Director of Scottish 
Provident, Deputy Chairman of Aberdeen Asset Management, and is Chairman of 
Royal Liver Assurance.  David will Chair the Risk Committee. 
 
Premium Listing and appointment of corporate brokers 
 
Pearl Group continues with its preparations for a Premium Listing in the first 
half of 2010.  The Group is pleased to announce that it has appointed Deutsche 
Bank and JP Morgan Cazenove to be joint corporate brokers to the Group. 
 
Intention to change name 
 
The Board of Pearl Group is to ask shareholders to approve a change in its name 
to Phoenix Group Holdings.  An EGM will be scheduled to be held on 15 March 2010 
and it is intended that the Group will trade under the name Phoenix Group 
Holdings from 17 March 2010. 
 
Following the Group's reconstruction in September last year, which resulted in 
the injection of new capital, changes to ownership, a transition to publicly 
listed from privately owned status and the appointment of a new Chairman in Ron 
Sandler, the Phoenix name was chosen as the core brand for the Life Company 
businesses.  The Board has considered the Group's brand positioning and believes 
that there is value to be obtained by extending the Phoenix name and brand to 
the parent company level. 
 
Corporate calendar 
 
A presentation of Pearl Group's preliminary results is scheduled to take place 
on 31 March 2010 at the offices of JP Morgan Cazenove, 20 Moorgate, London EC2R 
6DA at 8.30 am. 
 
Enquiries: 
 
Media: 
Andrew Grant, James Bradley, Mal Patel 
Tulchan Communications 
+44 (0) 20 7353 4200 
 
Daniel Godfrey 
Director of Corporate Communications, Pearl Group 
+44 (0) 20 7489 4517 
+44 (0) 7894 937 890 
 
Investors: 
Samuel Perowne, Pearl Group 
+44 (0) 20 7489 4489 
 
Corporate brokers: 
Martyn Dodgson, Andrew Smith, Deutsche Bank 
+44 (0) 20 7545 8000 
 
Tim Wise, JP Morgan Cazenove 
+44 (0) 20 7155 4576 
 
Conor Hillery, JP Morgan Cazenove 
+ 44(0) 20 7155 4622 
 
Notes for Editors 
 
Pearl Group is listed in London and Amsterdam, and owns a range of household 
name life assurers, serving over 6.5 million policyholders.  The companies are 
all closed to new business and the Group is fully focused on the provision of 
service and investment performance to its policyholders rather than the 
development of costly new business.  The group has over GBP66 billion of assets 
under management by its wholly owned subsidiary, Ignis Asset Management, which 
manages the Group's funds as well as assets on behalf of external clients. 
 
The Group has a simple business model, the safe and responsible de-commissioning 
of closed life funds in the interests of millions of policyholders.  A great 
deal of skill and expertise is applied to the management of the closed books of 
business that the Group acquires.  The business model is highly cash generative 
as the regulatory reserves of capital which are required to be held to back the 
liabilities of policies in force can be released as the business runs off over 
time. 
 
The cash generation from operating subsidiaries in excess of GBP500 million is 
in addition to the GBP170m due from Royal London to Phoenix Life Limited which 
was released in Q3 2009.  This amount was used to offset amounts due to Royal 
London from other group companies. 
 
Pearl Group's cash generation from subsidiaries comprises cash distributed to 
the UK holding companies from its life, service and asset management companies, 
and amounts received from these subsidiaries in respect of group relief 
payments.  The amounts distributed from Pearl Group's life companies are 
generated from the interest earned on capital, the release of excess capital, 
policyholder charges and management fees earned on assets. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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