Phoenix Group's subsidiary Pearl Life Holdings has agreed to acquire AXA Wealth's pensions and protection business, for about £375m.


Under the deal, Pearl Life will acquire Embassy pensions and investments business, as well as SunLife that operates in 50s protection sector.

Embassy provides a range of propositions, including the retirement wealth account, family sun trust, corporate trustee investment plan and investment bond.

SunLife, which has around 850,000 policies in force, has 78% guaranteed over 50 products and 22% funeral plans.

Phoenix Group CEO Clive Bannister said: "The acquisition of the Embassy and SunLife businesses represents another important step forward in Phoenix’s growth strategy.

"The transaction meets our acquisition criteria and will generate additional cash for the Group which supports the proposed increase in Phoenix’s dividend.

"The Group has extensive integration experience and expertise and we believe that both the Embassy and SunLife businesses are a strong fit, benefitting both shareholders and policyholders alike."

Subject to customary closing conditions, the deal is expected to complete in the second semester of this year.

In September 2015, Principal Financial Group acquired Axa’s Mandatory Provident Fund and Occupational Retirement Schemes Ordinance pension business in Hong Kong, for around $335m.

Image: Phoenix Group’s London Juxon house office 1. Photo courtesy of Phoenix Group Holdings.