Phoenix Group Holdings plc has reached an agreement to offload Ark Life Assurance Company DAC to Irish Life Group Limited for €230 million (£197mn) in cash, subject to customary regulatory and antitrust approvals.
Ark Life is a closed book of business which manages heritage savings and protection products in Ireland. Phoenix acquired Ark Life in 2020 as part of its acquisition of Swiss Re’s ReAssure Group plc.
The total cash consideration represents 0.91x Solvency II Own Funds and is payable on completion, which is expected by early next year. Phoenix says that it does not expect the acquisition to materially impact its 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,” says the company.
At the same time, Phoenix notes that it is moving forward with a range of management actions to maximise shareholder value from its remaining European business, Standard Life International DAC.
The buyer, Irish Life, already operates Ark Life’s policy administration and investment management under an outsourcing agreement, and is one of Ireland’s leading life and pensions firms.
