Proposed acquisition of ReAssure Group plc
The transaction confirms Phoenix as Europe’s largest life and pensions consolidator
Phoenix is acquiring 100% of ReAssure Group plc (“ReAssure”)
Enhances Phoenix’s key attributes of Cash, Resilience and Growth
Incremental cash generation supports 3% dividend increase
We will take an aligned approach to integration to ensure enterprise stability
Financial benefits of transaction
Acquisition delivers Cash and Resilience with all metrics within target range
Significant increase in total future in-force cash flows to £19 billion
Expected cost and capital synergies from the transaction are substantial
Attractive transaction pricing with price to own funds ratio of 0.91x
£3.5 billion ReAssure pro-forma own funds reflects positive variances during 2019
Efficient financing structure that utilises debt capacity
Clear governance structure with support from strategic shareholders
Our outstanding debt will reduce over the coming years
Enhanced balance sheet strength with resilience maintained
Cash generation builds holding company cash and supports dividend
Beyond 2023, we will deliver a further £12.5 billion of cash generation
The acquisition of ReAssure is strategically compelling
Phoenix will deliver enhanced Cash, Resilience and Growth