This is our first acquisition to be financed solely from existing cash resources, reflecting the surplus cash and capital available for reinvestment into growth. Sun Life UK represents c.£10 billion of the estimated £480 billion UK Heritage M&A market.
M&A remains an ongoing strategic priority The acquisition is subject to regulatory approvals and is expected to complete in Q1 2023. This will further enhance and diversify our liquid and illiquid credit origination capabilities in North America, building on Sun Life’s strong presence in the region. In line with our strategy to diversify our credit portfolio, we have also agreed a new long-term strategic asset management partnership with Sun Life that complements our existing relationships. We are targeting the delivery of c.£125 million of integration synergies, net of costs, from cost efficiencies and capital management actions, representing c.50% of the consideration paid. Sun Life UK operates a predominantly outsourced business model with the majority of its policy administration already undertaken by our strategic outsourcing partner (TCS Diligenta), which supports a simplified operational integration programme.
The acquisition is expected to deliver c.£470 million of incremental long-term cash generation, with approximately 30% of this cash generation to emerge in the first three years. This equates to an attractive price to shareholder Own Funds ratio of 83%1, in line with the Board’s disciplined approach to the deployment of shareholder capital. (“Sun Life”) for cash consideration of £248 million. The Board of Phoenix Group Holdings plc (“Phoenix Group” or the “Group”) is delighted to announce the acquisition of Sun Life UK, a closed book UK life insurance company, from Sun Life Financial Inc. Supports a 2.5% inorganic dividend increase payable from and including the 2022 Final Dividend.Targeting c.£125 million of cost and capital integration synergies, net of costs.Acquisition is expected to deliver c.£470 million of incremental long-term cash generation.Attractive transaction pricing with a price to shareholder Own Funds ratio of 83% 1.
Phoenix Group to acquire SLF of Canada UK (“Sun Life UK”), a closed book UK life insurance company, for £248 million, funded from existing cash resources.
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