PensionsAug 1 2014

Consolidator buys £1.7bn annuity book from Phoenix

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Guardian Financial Services, the closed life consolidator acquired by private equity equity giant Cinven from Aegon in 2011, has today (1 August) acquired £1.7bn of pension annuities-in-payment from Phoenix.

Guardian has completed three transactions since it began a strategy of acquiring closed books and businesses in November 2011.

Phoenix will transfer approximately £1.7bn of assets to Guardian to meet all future payments to the annuity policyholders, initially under a reassurance arrangement. Following the transfer, Guardian will manage approximately £17bn of assets on behalf of 900,000 customers in the UK and Ireland.

Guardian already acquired £5bn of annuities-in-payment during its first transaction with Phoenix in June 2012. UK-based private equity firm Cinven acquired Guardian from Aegon in 2011.

The latest transaction follows Guardian’s acquisition of closed life assurance business Ark Life from AIB in December last year, which it said it hoped would provide a platform for further consolidation in the Irish market and the reassurance of life insurance business from the UK and continental Europe.

Jonathan Yates, chief executive of Guardian, said: “We are delighted to have concluded our second transaction with Phoenix following on so quickly from our recent announcement concerning AIB and Ark Life.

“Guardian has a very successful strategy, a strong capital position and is well placed to benefit from the significant opportunities in the European life assurance market.”