LEI: 2138001P49OLAEU33T68

Phoenix Group's Internal Model Harmonisation application is approved by the PRA

The Board of Phoenix Group Holdings plc ("the Group") is pleased to announce that the Prudential Regulation Authority ("PRA") has approved its application to harmonise its legacy Phoenix and Standard Life internal models.

This single, more sophisticated harmonised Internal Model will provide deeper insights into our risk profile which further strengthens the Group's risk management approach and decision making, as well as delivering significant capital synergies through diversification and improved risk modelling.

The harmonised Internal Model will go live effective 30 September 2021 and is currently estimated to increase the Group's Solvency II ("SII") Surplus by c.£0.4 billion. It is expected that c.£0.1 billion of the increased SII Surplus will then emerge as an acceleration of cash in 2022, after an appropriate period of operation.

The harmonised Internal Model also delivers a reduced capital strain for the Group's Bulk Purchase Annuity ("BPA") new business and unlocks a wider pipeline of future management actions including the execution of Part VIIs, the delivery of further enhancements to the Group's credit risk modelling capabilities and the foundation to bring ReAssure onto the new Internal Model in time. It will also support the Group in delivering future value accretive M&A.

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Enquiries

Investors/analysts:

Claire Hawkins, Director of Corporate Affairs, Phoenix Group

+44 (0)20 3735 0575

Andrew Downey, Investor Relations Director, Phoenix Group

+44 (0)20 3735 0160

Media:

Douglas Campbell, Teneo

+44 (0)775 313 6628

Shellie Wells, Corporate Communications Director, Phoenix Group

+44 (0)20 3735 0922

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Legal Disclaimers

This announcement in relation to Phoenix and its subsidiaries (the "Group") contains forward-looking statements about the Group's current plans, goals and expectations relating to future financial events, conditions, performance, results, strategy and/or objectives. Statements containing the words: 'believes', 'intends', 'will', 'expects', 'may', 'should', 'plans', 'aims', 'seeks', 'continues', 'targets' and 'anticipates' or other words of similar meaning are forward-looking. Such forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the Group's control. As a result, such future events and the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set out in the forward-looking statements in this announcement. The Group undertakes no obligation to update any of the forward-looking statements contained within this announcement. References in this announcement to Solvency II Surplus should be read in conjunction with the relevant footnotes set out in the 2021 Half Year Results Announcement of 11 August 2021.