13th Jul 2021 08:31
(Alliance News) - Phoenix Group Holdings PLC has agreed to sell Ark Life Assurance Company DAC to Irish Life Group Ltd for EUR230 million in cash, it announced on Tuesday.
The long-term savings and retirement firm will sell Ark Life, which is a closed-book business managing heritage savings and protection products in Ireland. Ark has GBP1.8 billion in assets under administration. It was acquired by Phoenix in 2020 as part of the FTSE 100 company's purchase of Swiss Re AG's UK business ReAssure Group.
"This transaction simplifies our European operations and accelerates the cash release from this business," Phoenix said.
The proceeds from the sale would be used for investment into "higher return growth opportunities to drive incremental future cash generation."
Shares in Phoenix were up 0.2% at 695.00 pence in early Tuesday morning trading in London.
Last month talks broke down between Phoenix and a third party over a potential sale of its European business, with Phoenix opting instead to progress a "range of management actions" to maximise shareholder value.
By Will Paige; [email protected]
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