Closed-book firm Phoenix has confirmed it is in “advanced discussions” with Deutsche Bank over acquiring Abbey Life.
A London Stock Exchange notice says: “As stated at the time of the interim results on 25 August 2016, Phoenix continues to explore further acquisition opportunities in the UK closed life sector.
“In this context, Phoenix is in advanced discussions with Deutsche Bank in relation to a possible acquisition of Abbey Life. There can be no certainty that these discussions will lead to a transaction.”
According to Reuters, Phoenix is planning to raise £800m to fund the purchase, which is expected to be finalised in the next couple of weeks.
Speculation around the potential deal was reported in May, two weeks after it was revealed Abbey Life was one of the firms facing FCA enforcement after the regulator’s closed-book review.
Abbey Life includes books of business from companies including London and Edinburgh Life, Excess Life, Target Life and Hill Samuel Life.