Closed book pension provider Phoenix Group plans to ditch its Cayman Island holding company for the UK.
Since 2009 the main holding company for the life company consolidator has been registered in the Cayman Islands and domiciled in Jersey.
In results for the six months to 30 June published this morning, Phoenix said it would end this structure in favour of a new holding company registered in the UK.
Phoenix said this would reduce ‘additional burdens on our internal governance processes’ that occur from its existing structure.
‘[The move] will provide Phoenix with a stream-lined and cost-efficient internal governance structure as well as greater clarity for the group’s stakeholders, including shareholders, debt investors and regulators,’ it added.
The closed book provider saw its operating profit fall in the first half of 2016 to £107 million, compared to £135 million in the same period last year.
Phoenix attributed the fall in operating profit to changes in the amount of capital it held on its balance sheet.
The company acquired AXA Wealth’s pension business, which is called Embassy, and its protection business SunLife earlier in the year for £375 million.
Phoenix said it expected the deal to be completed in the final quarter of 2016. As previously announced, it hopes to make £250 million of savings after the deal is completed. The company said this would be achieved by outsourcing the administration of AXA Wealth’s pension business.
Clive Bannister, chief executive of Phoenix, said he expected to make more acquisitions following the AXA deal.
‘The acquisition of the AXA Wealth businesses is on track and will represent another important step forward in Phoenix’s growth strategy. The transaction meets our acquisition criteria and will generate additional cash for the group which supports the proposed future increase in Phoenix’s dividend,’ he said.
‘Looking ahead, we believe there will be further consolidation in the UK life industry and we will continue to explore further opportunities as they arise.’
Phoenix also appointed three new non-executive directors to its board today. Former Legal & General assurance chief John Pollock; former LV= chief investment officer Wendy Mayall; and former Lazard UK investment banking chief Nicholas Shott.
Earlier this year Phoenix appointed former Financial Conduct Authority pensions director Nick Poyntz-Wright as a non-executive director to the board of one of its subsidiaries.
Source: Citywire