Closed-book life assurance consolidator Phoenix (PHNX) has confirmed press reports that it is circling Guardian Financial Services, which through its subsidiaries manages savings and protection products for 900,000 European consumers.
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News of a deal demonstrates that Phoenix is continuing to stalk acquisition targets even while it is readying for the implementation of Europe-wide capital requirements, Solvency II, next year. The company had managed to keep its gearing low enough to pursue new business, and was awarded investment grade status by Fitch Ratings in August. But there is no certainty that the Guardian deal will go through, and the discussions are not exclusively between the two parties.
