Phoenix Group shares fell on Wednesday after announcing its intention to explore the potential sale of its SunLife Limited business.
Phoenix Group shares were down 1.04% at the time of writing.
SunLife, which specialises in providing financial protection products to the over-50s market reported a profit after tax of £16 million in 2023.
The decision to consider divesting SunLife comes as Phoenix Group refocuses its strategy on becoming a leading force in the UK’s retirement savings and income sector. While SunLife has been a profitable entity within the group’s portfolio, its alignment with Phoenix’s core vision has diminished, prompting the exploration of a potential sale.
The sale process is in its early stages, with Phoenix Group having received several initial expressions of interest from third parties. This suggests a healthy appetite for SunLife’s business model and financial performance. However, the company has emphasised that there is no guarantee of a transaction at this point.