Deutsche Bank and insurer Phoenix Group are on the verge of striking a deal for the sale of the lending giant’s British insurance business, media reports say.
The consolidator of closed-life insurance businesses has emerged as the frontrunner to buy Abbey Life Assurance from the German bank,
Bloomberg and
Reuters reported, citing unnamed sources familiar with the matter.
According to the reports, Phoenix is planning to raise about £800 million to help fund the purchase. The insurer and Deutsche bank are expected to finalise the deal within the next couple of weeks.
Both companies have yet to comment on the potential transaction.
Abbey Life, which was bought by Deutsche Bank for £977 million pounds in 2007, is valued at around £1 billion,
Reuters learned in June.
Deutsche Bank has been considering the sale of Abbey Life since October 2015, with Phoenix,
Swiss Re subsidiary Admin Re and Legal & General Group as the reportedly interested buyers.
The German lender said earlier this year that it was reviewing options for Abbey Life,
Bloomberg reported, as CEO John Cryan faced pressure to boost earnings and capital buffers.
The sale of Abbey Life hit a roadblock in March when the Financial Conduct Authority started investigating Abbey Life’s treatment of its long-time life insurance customers. The results of the probe may compel the insurer to pay fines or compensation to policyholders.
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Sale of Abbey Life Assurance hit by regulator investigation
Phoenix eyes more acquisitions after AXA UK buyout
