Phoenix Group Holdings plc considers sale of SunLife Limited amid strategic refocus

Phoenix Group Holdings plc, the UK’s largest long-term savings and retirement business, has announced its intention to explore the potential sale of SunLife Limited, its subsidiary catering to the over 50s market in the UK. This decision comes as Phoenix Group looks to streamline its operations and focus on its core vision of becoming the leading retirement savings and income business in the UK.

Key Points of the Potential Sale:

– Business Overview: SunLife, known for providing financial protection products directly to the over 50s market, reported a profit after tax of £16 million in 2023.

– Strategic Rationale: Following a comprehensive strategic review, the Board of Phoenix Group has concluded that SunLife no longer aligns with the Group’s core business objectives. As a result, a sale process has been initiated, backed by initial expressions of interest from various third parties.

– Uncertainty and Forward-Looking Statements: Although the process has begun, there is no certainty that the sale will be completed. Phoenix Group plans to make further announcements as the situation develops.

SunLife, which became part of Phoenix Group after being acquired from AXA in 2016, has a distinguished history of over 200 years. It was the pioneer in offering life insurance without a medical exam and is currently the leading provider of life insurance for the over 50s in the UK. The company offers a range of financial products and services, including life insurance, equity release, and planning tools designed specifically for the needs of older adults.

Phoenix Group, headquartered in Europe, is the largest life and pensions consolidator on the continent. The Group’s primary business involves managing life and pension insurance funds, focusing on the segments of retirement savings and income. The potential divestiture of SunLife is part of Phoenix Group’s strategy to optimize its business portfolio and enhance its focus on core areas.

The decision to divest SunLife reflects a strategic pivot towards streamlining operations and concentrating on key areas that promise higher growth and alignment with Phoenix Group’s long-term goals. This move could potentially lead to more focused investment in their core retirement savings and income sectors, enhancing overall business efficiency and market positioning.