Hogan Lovells Advises Phoenix Group on Sale of £1.7 Billion Annuity Business
12 August 2014
12 August 2014 - LONDON – Hogan Lovells has advised the Phoenix Group on the sale of their annuity business with liabilities of approximately £1.7 billion to Guardian Assurance Limited. The transaction was announced on Thursday 31 July.
The transaction is the second such transaction which the Phoenix Group has entered into with Guardian, which is owned by Cinven, following the sale of a £5 billion annuity business which completed in September 2013. The current transaction involves an initial reinsurance, effective 1 January 2014, to be followed by a transfer of the annuity policies under Part VII of the Financial Services and Markets Act 2000.
The transaction will remove a significant element of longer dated risk from three with-profits funds in Phoenix Group's primary life insurance company, Phoenix Life Limited.
The team advising Phoenix Group was led by London corporate partner Charles Rix, with assistance from senior associate Jonathan Russell and a cross-practice London team.
Commenting on the transaction, Charles Rix said:
"We are delighted to have been able to assist Phoenix Group with another significant transaction in their ongoing programme to protect and enhance the interests of policyholders in their closed with-profits funds."