LONDON (dpa-AFX) - Phoenix Group (PHNX.L) announced Tuesday that it has entered into an agreement to sell Ark Life Assurance Co. DAC to Irish Life Group Ltd., a life and pensions company, for a total cash consideration of 230 million euros or about 197 million pounds.
The cash consideration is payable on completion, expected by early 2022, 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.
Ark Life is a closed book business that manages heritage savings and protection products in Ireland. It was acquired by Phoenix as part of the ReAssure acquisition in 2020.
Ark Life contributed 1.8 billion pounds of assets under administration to Phoenix's Heritage division as of December 31, 2020.
Phoenix said the deal simplifies its European operations and accelerates the cash release from this business.
The company expects to redeploy the capital into higher return growth opportunities to drive incremental future cash generation.
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