Phoenix Life Holdings to Acquire Abbey Life Assurance Company
OREANDA-NEWS. Deutsche Bank announced today that it has reached an agreement with Phoenix Life Holdings Limited, a subsidiary of Phoenix Group Holdings Limited, to sell its Abbey Life business which is held within Deutsche Asset Management.
Under the terms of the transaction, Phoenix Life Holdings Limited will acquire 100% of the Abbey Life business for 935 million pounds (1.085 million euros, based on current exchange rates).
The transaction is subject to regulatory approvals including that of the Prudential Regulatory Authority. The sale will have a net positive capital impact upon closing of the transaction and, on a pro-forma basis, would have improved Deutsche Bank’s Common Equity Tier 1 capital ratio (CRR/CRD 4 fully loaded) as of 30 June 2016 by approximately 10 basis points.
The transaction will result in an expected pre-tax loss of approximately 800 million euros, primarily resulting from impairment of goodwill and intangible assets. The transaction is not expected to have a material impact on Deutsche Bank’s Available Distributable Items.