Last checked at 13 Jul 2021 07:00
LEI: 2138001P49OLAEU33T68
Phoenix Group announces the sale of Ark Life Assurance Company
Phoenix Group Holdings plc ("Phoenix" and, together with its subsidiaries, "the Group") today announces that it has entered into an agreement to sell Ark Life Assurance Company DAC ("Ark Life") to Irish Life Group Limited ("Irish Life") for a total cash consideration of €230 million (£197 million)1.
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 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.
About Ark Life
Ark Life 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.
About Irish Life
Irish Life 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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Enquiries
Investors/analysts:
Claire Hawkins, Director of Corporate Affairs and Investor Relations, Phoenix Group
+44 (0)20 3735 0575
Andrew Downey, Head of Investor Relations, Phoenix Group
+44 (0)20 3735 0160
Fenchurch Advisory Partners (Financial Adviser)
Malik Karim, Chris Deville, Divya Dhar
+44 (0)20 7382 2222
Media:
Douglas Campbell, Teneo
+44 (0)775 313 6628
Haya Herbert Burns, Teneo
+44 (0)734 203 1051
Shellie Wells, Head of Corporate Communications, Phoenix Group
+44 (0)20 3735 0922
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Footnotes
1. Exchange rate of GBP/EUR of £1/€1.17 as at 12 July 2021.
2. The economic risk and reward of the business will transfer to Irish Life with effect from 1 January 2021.
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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.