 announced on Tuesday that it has entered into an agreement to sell Ark Life Assurance Company DAC.){kind=link}
Phoenix does not expect to see its solvency or long-term free cash positions materially impacted by the transaction
Phoenix Group Holdings (LON:PHNX) announced on Tuesday that it has entered into an agreement to sell Ark Life Assurance Company DAC to Irish Life Group Limited for a total €230m (£197m).
The cash consideration is payable on completion and expected by early 2022, subject to customary regulatory and anti-trust approvals, Phoenix said.
The FTSE 100 company does not expect to see its solvency or long-term free cash positions materially impacted by the transaction.
“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,” the company said.
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. While Irish Life is one of Ireland’s leading life and pensions companies.
The Phoenix Group share price is up by 0.46% during the morning session on Tuesday.