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Phoenix hints at further takeovers after completing Axa Wealth and Abbey Life deals

Phoenix Group 480 Wythall office Birmingham
Phoenix Group’s offices in Wythall, Birmingham

Phoenix has hinted that it could make further acquisitions in the near future after successfully incorporating Axa Wealth’s pension and protection businesses and Abbey Life into the firm.

In the closed-book provider’s annual results today, Phoenix said that the Axa acquisition, which was first announced in May, had completed “ahead of expectations” on 1 November and cost £373m, £2m under the £375 quoted at the outset.

Phoenix also upped the amount is expects to cut costs through its acquisition of the Axa Wealth businesses – Embassy, Axa’s off-platform investment and pension division and Sun Life, its direct protection business – from £10m to between £13 and £15m.

The Abbey Life acquisition for £933m also completed on 30 December. Phoenix has turned the £250m in short-term acquisition funding pot for the deal into an enlarged £900m revolving credit facility.

Phoenix chief executive Clive Bannister said that the company now has “greater flexibility in financing future acquisitions” and expected more mergers to occur between UK life companies.

Bannister says: “The Group has safely incorporated our new customers from the AXA Wealth and Abbey Life businesses and is focused on delivering the planned cost and capital synergies. We are grateful for the support of our investors during 2016 and we believe there will be further consolidation in the UK life industry. We continue to explore opportunities as they arise.”



Phoenix acquires Abbey Life in £935m deal

Deutsche Bank has agreed to sell Abbey Life to rival closed-book provider Phoenix Group in a deal worth £935m. The deal is subject to regulatory approval, and will result in an expected pre-tax loss for Deutsche Bank of €800m (£688m). Abbey Life will add £10bn of assets under management to Phoenix’s Book and around 735,000 […]


Axa Wealth and Sun Life sold to Phoenix

Axa UK has agreed to sell the remaining part of its Wealth arm to Phoenix Group for £375m. The Wealth business includes Embassy, Axa’s off-platform investment and pension division and Sun Life, its direct protection business which provides cover for the over 50s market. The deal will add £12.3bn of assets and over 910,000 policies […]

Poyntz-Wright-Nick-FCA-2013 500 x 320.jpg

Ex-FCA pensions director Poyntz-Wright joins closed-book firm Phoenix

Former FCA long-term savings and pensions director Nick Poyntz-Wright has joined closed book provider Phoenix as a non-executive director. He will sit on the board of the life company, not the group. In March he was also made a non-executive director at annuity specialist Just Retirement. Poyntz-Wright joined the FSA in 2011 after seven years […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. “Planned cost synergies” = lower costs due to fewer staff, as can be seen in the worse service standards. But don’t worry about the customers and IFAs getting a bad deal, the shareholders are doing nicely.

  2. St James' Place Is Very Expensive Limited Advice 20th March 2017 at 11:06 am

    More inside bovine jargon, these people bore me to death with their double speak

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