Phoenix Group has acquired Sun Life UK, a closed book UK life insurance company, from Sun Life Financial for £248m.
The acquisition is expected to deliver around £470m of incremental long-term cash generation, with approximately 30% of this sum to come in the first three years.
It is subject to regulatory approvals and is expected to complete in the first quarter of 2023.
Phoenix Group CEO Andy Briggs (pictured) said: “The acquisition of Sun Life UK is highly attractive for Phoenix Group and demonstrates the significant value that smaller cash funded M&A transactions can deliver for our shareholders.
“We expect this acquisition to deliver incremental long-term cash generation of around £470m, inclusive of cost and capital synergies. This supports a 2.5% dividend increase, in line with our ambition to sustainably grow our dividend over time.
“We welcome the colleagues who will join us from Sun Life UK, and as the UK’s largest long-term savings and retirement business with a strong track record of closed book integrations, we look forward to offering a safe home for Sun Life UK’s customers over the long term.
“I am pleased that we will also be able to offer Sun Life UK’s customers access to our broad range of Standard Life products in our open division.”
