Phoenix Group offloads Ark Life Assurance in GBP200mln deal

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Phoenix Group Holdings PLC (LON:PHNX) said it agreed to sell its Ark Life Assurance Company to insurance and pensions firm Irish Life Group for around EUR230mln (GBP197mln) in cash.


The FTSE 100 savings and retirement firm said the sale price represented 0.91 times the Solvency II Own Funds and is payable upon completion of the sale, which is expected early next year.


READ: Phoenix Group mulls sale of European businesses


Phoenix added that the transaction will simplify its European operation and accelerate the cash released from the Ark business, adding that it expects to redeploy the capital into “higher return growth opportunities to drive incremental future cash generation”.


The group also said the sale is not expected to impact its solvency or long-term free cash positions and that it is continuing to progress a range of actions to maximise value from its remaining European business, Standard Life International.


Shares in Phoenix moved 0.4% higher to 695.8p in early deals on Tuesday.

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