Business

Phoenix to sell Ark Life Assurance Company for £197m

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

Phoenix Group Holdings has announced that it has entered into an agreement to sell Ark Life Assurance Company to Irish Life Group Limited for a total cash consideration of €230m (£197m).

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.

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 benefit both customers and colleagues alike.

The cash consideration represents “0.91 solvency II own funds” and is payable on completion and is expected by early 2022.

In addition, the transaction is not expected to “materially impact” the firm’s solvency or long term free cash positions.

The sale will enable the group to simplify its European operations and accelerate the cash release from this business, with the group expecting to redeploy the capital into “higher return growth” opportunities to drive incremental future cash generation.

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