Phoenix Group, the largest
player in the UK’s closed life insurance book sector, has ended
speculation in the media by confirming it has received a number of
approaches from potential bidders for the company.
Among suitors with which
Phoenix Group’s board has held discussions is Resolution, a
London-based, Guernsey-incorporated, life insurance company
established in December 2008 by arch-acquisitor Clive
Cowdery.
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In its statement, Phoenix
Group noted the discussions with Resolution had proved fruitless.
According to a report in the UK newspaper The Sunday
Times, Resolution had put an offer for Phoenix Group of about
£1.2bn ($1.7bn) on the table.
Had Resolution’s bid for
Phoenix Group succeeded it would have arguably been Cowdery’s
ultimate coup. Phoenix Group was formerly Resolution Plc, a company
Cowdery formed in 2003 as a specialist in closed life
books.
Resolution Plc was the
subject of a bid by insurance company consolidator Pearl Group in
2007. Following an unsuccessful counter-bid by Standard Life, Pearl
Group succeeded in acquiring Resolution Plc in May 2008 for £5bn.
The name Phoenix Group was adopted in 2010.
Phoenix Group noted that it
remains engaged with other companies including UK-based CVC Capital
Partners, one of the world’s five largest private equity
firms.
Commenting on the approaches
Phoenix Group has received, company chairman Ron Sandler said in a
statement: “The board is obliged to evaluate any proposals that are
received.”
Sandler stressed Phoenix
Group’s board believes the company has “robust and predictable
long-term cash flows”, is in a strong position to “deliver
substantial value” and has a “compelling business
model”.
In the eight months to November 2011, Phoenix Group
generated £603m and anticipates generating between £750m and £850m
in the full year. The company reported total assets under
management of £68.5bn at the end of June 2011.
