Established in 2009, the main holding company for the closed book pension provider has been registered in the Cayman Islands and domiciled in Jersey.
In the company’s half year results, published on Thursday, Phoenix said it would replace this structure with a holding company registered in the UK, adding that it will reduce “additional burdens on our internal governance processes” that occur from its existing arrangement.
“[The move] will provide Phoenix with a streamlined and cost-efficient internal governance structure as well as greater clarity for the group’s stakeholders, including shareholders, debt investors and regulators,” said the company.
The closed book provider, which acquired Axa Wealth’s pension business Embassy, and its protection business SunLife earlier in the year for £375m ($495m, €439m), saw its operating profit fall in the first half of 2016 to £107m, compared to £135m in the same period last year.
More acquisitions
Phoenix put the fall down to the amount of capital it held on its balance sheet, with chief executive Clive Bannister expecting the company to make more acquisitions following the Axa deal.
“The acquisition of the Axa Wealth businesses is on track and will represent another important step forward in Phoenix’s growth strategy. The transaction meets our acquisition criteria and will generate additional cash for the group which supports the proposed future increase in Phoenix’s dividend,” he said.
“Looking ahead, we believe there will be further consolidation in the UK life industry and we will continue to explore further opportunities as they arise.”
