Independent review report to the Directors of Phoenix Group Holdings on the Consolidated Phoenix Group Market Consistent Embedded Value (MCEV)
Introduction
We have been engaged by the Company to review the Consolidated Phoenix Group Holdings MCEV in the Interim Report for the half year ended 30 June 2010 which comprises the Summarised consolidated income statement – Group MCEV basis, MCEV earnings per ordinary share, Statement of consolidated comprehensive income – Group MCEV basis, Reconciliation of movement in equity – Group MCEV basis and the related notes 1 to 7. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Phoenix Group MCEV.
Ernst & Young Accountants LLP have reported separately on the condensed consolidated financial statements of Phoenix Group Holdings for the half year ended 30 June 2010. The information contained in the Phoenix Group Holdings MCEV should be read in conjunction with the condensed consolidated financial statements prepared on an IFRS basis.
This report is made solely to the Company's Directors in accordance with the guidance contained in International Standards on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s Directors, for our work, for this report, or for the conclusions we have formed.
Directors’ responsibilities
The Phoenix Group Holdings MCEV is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Phoenix Group MCEV supplementary information in accordance with the basis of preparation set out on pages 61 to 64.
Our responsibility
Our responsibilities for the Phoenix Group Holdings MCEV are set out in our engagement letter with you dated 26 March 2010. We report to you our opinion as to whether the Phoenix Group Holdings MCEV in the Interim Report has been properly prepared, in all material respects, in accordance with the Basis of Preparation set out on pages 61 to 64.
Scope of review
We conducted our review in accordance with International Standards on Review Engagements (UK and Ireland) 2410. A review of interim financial information consists of making enquiries, primarily of the persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK & Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention to cause us to believe that the Phoenix Group Holdings MCEV in the Interim Report for the half year ended 30 June 2010 has not been prepared, in all material respects, in accordance with the basis of preparation as set out on pages 61 to 64.
Ernst & Young LLP
London
26 August 2010