Axa Wealth and Abbey Life acquisitions drive Phoenix growth
By Kirsten Hastings
Phoenix Group is eyeing further acquisitions after Abbey Life and Axa Wealth added £22bn ($27.3bn, €25.4bn) in assets under management and more than 1.6 million policies to the life company consolidator’s books in 2016.
The Axa Wealth pensions protection businesses were acquired in May 2016 for £373m in cash, while Abbey Life was bought for £933m from Deutsche Bank in September.
The acquisitions drove group assets under management up 40.7% to £76bn in 2016.
Group chief executive Clive Bannister said Phoenix “has safely incorporated our new customers from the Axa Wealth and Abbey Life businesses”.
Valuing the UK closed life fund market, excluding Phoenix Group, at more than £300bn in assets, Bannister expects greater market consolidation and opportunity in 2017.
“Phoenix Group is well positioned to benefit from the evolving UK life insurance industry,” he said.
“I continue to believe that the impact of regulatory changes will provide Phoenix with further opportunities, as open life companies reappraise their business models and strategies for their legacy policies.”
Bannister added: “The group is well placed to generate additional benefits from future acquisitions”.Category: News