Phoenix Life’s proposed takeover of closed life insurer Admin Re has collapsed after the two parties failed to agree terms.
In July, closed-book life consolidation vehicle Phoenix confirmed it was early stage talks with Admin Re, a subsidiary of Swiss Re, about a possible £3bn merger.
However, in a joint statement issued yesterday the companies said: “Further to the statement on 12 July 2013 by Phoenix Group Holdings regarding its preliminary discussions with Swiss Re Ltd in relation to a possible combination of Phoenix and Swiss Re’s UK Admin Re Business Unit Swiss Re and Phoenix today confirm that such discussions have terminated as the parties have been unable to agree the terms on which a mutually acceptable transaction could take place.”
Admin Re says it will “continue to seek to fully establish its franchise value in the UK and Continental Europe”.
Phoenix says it remains “on track” to achieve the top end of its 2013 cash generation target of £650m – £750m, having already achieved £734m of cash generation so far.