Phoenix Group has announced the sale of Ark Life Assurance Company to Irish Life.

Phoenix Group Holdings plc (Phoenix and, together with its subsidiaries, the Group) today announced that it has entered into an agreement to sell Ark Life Assurance Company DAC (Ark Life) to Irish Life Group Limited (Irish Life) for a total cash consideration of €230m (£197m), 

Phoenix said in a statement on theLondon Stock Exchange earlier today, that the transaction "simplifies its European operations" and "accelerates the cash release" from the business. The group expects to redeploy the capital into "higher return growth opportunities to drive incremental future cash generation".

European business

"Phoenix continues to progress a range of management actions to maximise shareholder value from its remaining European business, Standard Life International, which provides strategic optionality to the group over the longer term, the statement read."

Ark Life is a closed book business which manages heritage savings and protection products in Ireland and was acquired by Phoenix as part of the ReAssure M&A deal in 2020.

 The statement added that the transaction is not expected to materially impact Phoenix's Solvency or Long-Term Free Cash positions.