Phoenix swoops in on Abbey Life
By Kirsten Hastings
Closed book pension provider Phoenix Group is reportedly making a move on Deutsche Bank’s UK insurance unit, Abbey Life.
According to Sky News, Phoenix has hired investment bankers to advise it on acquiring the life company.
Abbey Life has reportedly been valued at as much as £3bn, although sources close to Phoenix claim that it is really worth little more than £1bn ($1.4bn, €1.3bn).
Deutsche Bank has been looking to sell Abbey Life for several months, as part of its broader plan to focus on its core business.
The bank is understood to have begun contacting potential buyers, including other insurers and private equity firms, over the last few weeks. Deutsche Bank claims, however, that a final decision to sell the unit has not yet been taken.
Abbey Life closed to new business in 2000 and had around £12bn in assets when it was acquired by Deutsche Bank from Lloyds TSB in 2007.
The announcement comes shortly after the Financial Conduct Authority announced that Abbey Life, along with five other companies, is facing a full enforcement probe into its treatment of long-standing policy-holders.
This article was originally published in International AdviserCategory: News