Phoenix Group Holdings PLC Sale of Ark Life Assurance Company (0082F)
13 July 2021 - 4:00PM
UK Regulatory
TIDMPHNX
RNS Number : 0082F
Phoenix Group Holdings PLC
13 July 2021
LEI: 2138001P49OLAEU33T68
Phoenix Group announces the sale of Ark Life Assurance
Company
Phoenix Group Holdings plc ("Phoenix" and, together with its
subsidiaries, "the Group") today announces that it has entered into
an agreement to sell Ark Life Assurance Company DAC ("Ark Life") to
Irish Life Group Limited ("Irish Life") for a total cash
consideration of EUR230 million (GBP197 million) (1) .
The cash consideration represents 0.91x Solvency II Own Funds
and is payable on completion, expected by early 2022(2) , subject
to customary regulatory and anti-trust approvals. The transaction
is not expected to materially impact Phoenix's 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.
Phoenix continues to progress a range of management actions to
maximise shareholder value from its remaining European business,
Standard Life International DAC, which provides strategic
optionality to the Group over the longer term.
About Ark Life
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 GBP1.8 billion of assets under administration to
Phoenix's Heritage division as at 31 December 2020.
About Irish Life
Irish Life is one of Ireland's leading life and pensions
companies. Irish Life already operates Ark Life's policy
administration and investment management under an outsourcing
agreement. This transaction is therefore a natural evolution of the
existing relationship and simplifies the operating model to the
benefit of Ark Life's customers and colleagues.
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Enquiries
Investors/analysts:
Claire Hawkins, Director of Corporate Affairs and Investor
Relations, Phoenix Group
+44 (0)20 3735 0575
Andrew Downey, Head of Investor Relations, Phoenix Group
+44 (0)20 3735 0160
Fenchurch Advisory Partners (Financial Adviser)
Malik Karim, Chris Deville, Divya Dhar
+44 (0)20 7382 2222
Media:
Douglas Campbell, Teneo
+44 (0)775 313 6628
Haya Herbert Burns, Teneo
+44 (0)734 203 1051
Shell ie Wells , Head of Corporate Communications, Phoenix
Group
+44 (0)20 373 5 0922
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Footnotes
1. Exchange rate of GBP/EUR of GBP1/EUR1.17 as at 12 July
2021.
2. The economic risk and reward of the business will transfer to
Irish Life with effect from 1 January 2021.
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Legal Disclaimers
This announcement in relation to Phoenix and its subsidiaries
(the "Group") contains forward-looking statements about the Group's
current plans, goals and expectations relating to future financial
events, conditions, performance, results, strategy and/or
objectives. Statements containing the words: 'believes', 'intends',
'will', 'expects', 'may', 'should', 'plans', 'aims', 'seeks',
'continues', 'targets' and 'anticipates' or other words of similar
meaning are forward-looking. Such forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances that are beyond the Group's control. As a result,
such future events and the Group's actual future financial
condition, performance and results may differ materially from the
plans, goals and expectations set out in the forward-looking
statements in this announcement. The Group undertakes no obligation
to update any of the forward-looking statements contained within
this announcement.
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