It’s shaping up to be another very busy week for deals and acquisitions across the insurance sector;
Phoenix Group Holdings plc (“Phoenix” and, together with its subsidiaries, “the Group”) 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).
The cash consideration represents 0.91x Solvency II Own Funds and is payable on completion, expected by early 2022, 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.