Deutsche Bank sells UK insurance company Abbey

9 years ago - Published in Finance, Fundamental Analysis

Deutsche Bank sells the London-based insurance company Abbey Life to Phoenix Group for 935 million pounds (1.1 billion euros, $ 1.22 billion).

This was communicated by the German bank that took over Abbey Life in 2007, stressing that the operation will have a positive impact on capital of 1.1 billion euro. Although the transaction "will have a net positive capital impact," it's expected to lead to a pre-tax loss of around €800 million "primarily resulting from impairment of goodwill and intangible assets."

Speaking about the sale, John Cryan, chief executive officer of Deutsche Bank, said: “We are pleased to have reached this agreement with Phoenix Group, a specialist life fund provider which is well qualified to serve Abbey Life policyholders. Deutsche Asset Management will continue to focus on its core businesses of Active, Passive and Alternatives, while this transaction will also strengthen Deutsche Bank’s capital position. We continue to build a simpler and better Deutsche Bank.”

Deutsche Bank rose 3.5% after agreement.