Phoenix Group to Explore Potential Sale of SunLife Division

Phoenix Group, a UK-based insurance company, has announced its intention to explore the sale of its SunLife division following a strategic review. The decision to divest SunLife comes as Phoenix Group aims to focus on becoming the UK’s leading retirement savings and income business.

Phoenix Group acquired SunLife in 2016 as part of a larger deal with French company AXA for £375m (€443.25m). The acquisition of SunLife, along with other UK investment, pensions, and insurance businesses, marked Phoenix Group’s move into the consumer market. The company further solidified its presence in the market with the acquisition of the Standard Life brand in 2021.

SunLife is known for providing Life insurance and financial protection products to over-50s Britons, including guaranteed inheritance plans and equity release. In 2023, SunLife reported a profit after tax of £16m.

Phoenix Group manages more than £280bn in assets and serves 12 million customers. The company’s 2023 results showed a 13% increase in adjusted operating profit to £617m, driven by growth in its pensions and savings business. Phoenix Group also exceeded its 2025 cash generation target two years ahead of schedule, with total cash generation surpassing the forecast at just over £2bn in 2023.

In November 2023, Phoenix Group expanded its investment portfolio by acquiring a minority equity stake in venture capital investor Antler through its With-Profits funds. This investment aims to provide With-Profits clients with direct access to the early-stage market.

The decision to explore the sale of SunLife comes after Phoenix Group’s strategic review identified the business as no longer core to its vision. The company has initiated the sale process and has received initial expressions of interest from third parties. However, there is no certainty at this stage that a disposal will occur.

Overall, Phoenix Group’s decision to divest SunLife reflects its strategic focus on becoming a leading player in the retirement savings and income market. The company’s strong financial performance and successful cash generation demonstrate its commitment to delivering value to shareholders and customers. The sale of SunLife presents an opportunity for Phoenix Group to streamline its operations and further strengthen its position in the market.