Over the last couple of months
Insurance Business has been extensively covering the potential sale of Abbey Life to Phoenix Group (see our most recent article
here) – and now the move has been made official.
In a statement released this morning, Deutsche Bank announced that it has reached an agreement with Phoenix Life Holdings Limited, a subsidiary of Phoenix Group Holdings Limited, to sell its Abbey Life business (Abbey Life Assurance Company Limited, Abbey Life Trustee Services Limited and Abbey Life Trust Securities Limited).
The statement outlines that under the terms of the transaction, Phoenix Life Holdings Limited will acquire 100% of the Abbey Life business for £935 million.
The transaction is subject to regulatory approvals including that of the Prudential Regulatory Authority and will result in an expected pre-tax loss of approximately 800 million euros, primarily resulting from impairment of goodwill and intangible assets.
Speaking about the sale, John Cryan, chief executive officer of Deutsche Bank, said: “We are pleased to have reached this agreement with Phoenix Group, a specialist life fund provider which is well qualified to serve Abbey Life policyholders. Deutsche Asset Management will continue to focus on its core businesses of Active, Passive and Alternatives, while this transaction will also strengthen Deutsche Bank’s capital position. We continue to build a simpler and better Deutsche Bank.”
Related stories:
Phoenix confirms potential Abbey Life takeover, eyes more deals
Deutsche Bank nears Abbey Life sale to Phoenix – reports
