UK's Phoenix in advanced talks to buy Deutsche Bank's Abbey Life
[BENGALURU] Phoenix Group Holdings, Britain's largest owner of life assurance funds closed to new customers, said it was in advanced discussions with Deutsche Bank AG about the possible acquisition of the German lender's British insurance business, Abbey Life Assurance.
Deutsche Bank was nearing a deal to sell the business to Phoenix, a person close to the matter told Reuters on Thursday.
Phoenix is planning to raise £800 million (S$1.4 billion) to fund the purchase, which will be finalised in the next couple of weeks, the person said.
Phoenix said on Friday that it continued to explore further acquisition opportunities in the UK closed life sector.
Phoenix CEO Clive Bannister told Reuters in August that the company was scouting for acquisitions to help gain scale in a challenging, low interest rate environment after Brexit.
Regulatory changes and rock bottom interest rates had ramped up pressure on industry players to deal with their legacy books, leading many to consider putting them up for sale.
The interest rate cut that followed Britain's vote to leave the European Union has also squeezed returns on investments for companies that manage closed life insurers.
Deutsche Bank began weighing the sale of Abbey Life in October last year, attracting interest from Swiss Re AG unit Admin Re, Phoenix and Legal & General Group Plc among others, sources familiar with the matter have told Reuters.
Abbey Life, which was bought by Deutsche Bank for £977 million in 2007, is valued at about £1 billion pounds, sources told Reuters in June.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say