LONDON, UK: Phoenix Group Holdings has entered into an agreement to sell Ark Life Assurance Company DAC to Irish Life Group Limited for a total cash consideration of €230 million (£197 million).
The cash consideration represents 0.91x Solvency II Own Funds and is payable on completion, expected by early 20222, subject to customary regulatory and anti-trust approvals. The transaction is not expected to materially impact Phoenix’s Solvency or Long-Term Free Cash positions.
This transaction simplifies our European operations and accelerates the cash release from this business. The Group expects to redeploy the capital into higher return growth opportunities to drive incremental future cash generation.
Phoenix Group continues to progress a range of management actions to maximise shareholder value from its remaining European business, Standard Life International DAC, which provides strategic optionality to the Group over the longer term.
Ark Life Assurance is a closed book business which manages heritage savings and protection products in Ireland, and was acquired by Phoenix as part of the ReAssure acquisition in 2020. Ark Life contributed £1.8 billion of assets under administration to Phoenix’s Heritage division as at 31 December 2020.
Irish Life Group is one of Ireland’s leading life and pensions companies. Irish Life already operates Ark Life’s policy administration and investment management under an outsourcing agreement. This transaction is therefore a natural evolution of the existing relationship and simplifies the operating model to the benefit of Ark Life’s customers and colleagues.
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12 Jul, 4:35 pm GMT+1 ·Disclaimer