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June 27, 2012updated 13 Apr 2017 8:43am

Phoenix Group to transfer approx £5bn of assets to Guardian

Guardian Financial Services, a consolidator of closed assets in the European life insurance sector, has agreed to acquire 300,000 in-payment pension annuities from Phoenix Group, which is a closed life assurance fund consolidator

By Ronan Mccaughey

Guardian Financial Services, a consolidator of closed assets in the European life insurance sector, has agreed to acquire 300,000 in-payment pension annuities from Phoenix Group, which is a closed life assurance fund consolidator.

Phoenix Group will transfer approximately £5 billion ($78.1bn) of assets to Guardian to meet all future payments to the annuity policyholders. The deal is expected to be completed in July.

The companies will then work together to transfer the policies to Guardian under Part VII of the Financial Services and Markets Act 2000. Following the transfer, Guardian will manage approximately £13bn of assets on behalf of over 600,000 customers.

Jonathan Yates, chief executive of Guardian Financial Services, said: “[The transaction] represents an important next step for Guardian as we pursue our closed life fund consolidation strategy in the European life insurance sector.”

European private equity firm Cinven acquired Guardian in November 2011 as an entry point into the UK closed life market

Caspar Berendsen, a partner at Cinven, said: “This transaction demonstrates that there are clearly opportunities for further consolidation in the closed life sector.”

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