Closed book pension provider Phoenix Group has made a bid for Deutsche Bank-owned Abbey Life.
Phoenix, whose products are no longer open to new investors, has hired investment bankers to advise it on the deal, according to Sky News.
The news follows Phoenix’s failed bid to buy competitor Guardian Financial Services last year.
Abbey Life is the UK insurance arm of Deutsche Bank, and is reportedly worth £3 billion. However, sources close to the situation have suggested Phoenix will likely worth little more than a third of that.
Deutsche Bank has been looking to offload Abbey Life for some months, and began contacting potential buyers, including other insurers and private equity firms in the last few weeks.
Abbey Life closed to new business in 2000 and had around £12 billion in closed life policy holder assets when Deutsche Bank bought it from Lloyds TSB in 2007. It is currently facing a regulatory probe over treatment of those long-term clients, along with five other companies including Prudential and Old Mutual.
The company currently includes books of business from London and Edinburgh Life, Excess Life, Target Life and Hill Samuel Life.
Source: New Model Adviser