London Stock Exchange welcomes Phoenix Group Holdings plc celebrating the acquisition of ReAssure Group plc
On 22 July Phoenix Group plc completed the acquisition of ReAssure Group plc from Swiss Re Group. The transaction is another significant milestone on Phoenix’s growth journey and has established Phoenix as the largest long-term savings and retirement business in the UK with circa £300 billion of assets under administration and circa 14 million policies.
The acquisition is expected to generate additional cash flows of approximately £7.0 billion over time, of which approximately £2.7 billion is expected to be generated between 2020 and 2023 and a further £4.3 billion from 2024 onwards. Phoenix expects to deliver cost and capital synergies of £800 million by leveraging the Group’s highly efficient operating model and approach to capital management.
Consideration for the transaction comprised £1.2 billion of cash and 277,277,138 new ordinary shares, representing 27.8% of the enlarged share capital of the Group and issued to the Swiss Re Group. The new shares were admitted to the LSE at 8.00 a.m. on 23 July 2020.
Andy Briggs, CEO of the Phoenix Group commented: "I am delighted to confirm completion of the acquisition of ReAssure and would like to extend a warm welcome to our new colleagues joining Phoenix.
This is a highly attractive acquisition for Phoenix that further strengthens the Group’s key attributes of cash, resilience and growth and delivers value to our shareholders.”