Phoenix Group Holdings PLC (LSE:PHNX), the life and pensions specialist, kicks off the week with no sign of the boom in bulk annuity activity easing off.
Only last week subsidiary Standard Life pulled off another deal when it bought WH Smith’s pension scheme, a move unlikely to quieten analyst questions over cash flow and debt.
Swiss bank UBS sees the leverage or debt ratio as a key focus in next Monday’s interims.
Phoenix has targeted a ratio of 30% by FY26 on a Solvency II regulatory basis, with UBS expecting a figure of around 33% at the end of the first half and plenty of work needed to get the ratio down.
Interim cash flow is forecast at £600 million with operating profits of around £353 million.
A maintained half-year dividend of 26.65p is also forecast, with Phoenix yielding a hefty 9.2% and reflecting the concerns that its balance sheet is being overstretched.