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Phoenix Group explores potential sale of its SunLife business
The Phoenix Group Board has revealed its intention to explore the potential sale of its SunLife Limited business.
Following a strategic review, Phoenix concluded that SunLife is “no longer essential” to realizing its vision of becoming the UK’s leading savings and retirement income business.
The Board therefore decided to initiate a sale process and has reportedly received several initial expressions of interest from third parties.
However, the company reiterated that there can be no certainty at this stage that a divestiture will occur.
SunLife is a leading provider of direct financial protection products to the over-50s market in the UK and reported after-tax profit of £16m in 2023.
If you remember, Phoenix reported robust organic growth in 2023exceeding expectations and achieving its growth target for 2025 two years ahead of schedule.
At the time, the company announced net new business funding flows of approximately £7 billion, representing an impressive annual increase of around 80%.
A key highlight of its performance in 2023 was net workplace fund flows of approximately £4.5 billion, which almost doubled on the previous year.
This growth has been driven by the transfer of new scheme assets, including one of the largest workplace schemes tendered on the UK market in recent years.
