Deutsche Bank Sells UK Asset and Battles Bailout Rumors
Germany’s biggest private lender has sold its British insurance business to raise urgently needed cash to pay looming penalties for its past misdeeds
Deutsche Bank announced on Wednesday it had sold Abbey Life Assurance company for 935 million pounds (1.1 billion euros, $1.22 billion) under efforts to restructure its business amid increasing regulation, negative interest rates and a competitive home market.
Deutsche’s insurance business in the UK was acquired by Phoenix Group - Britain’s largest owner of life insurance funds, who added about 10 billion pounds of assets under management and approximately 735,000 policyholders to its portfolio with the deal.
Phoenix said it would raise 735 million pounds via a rights issue and use 250 million pounds from a new bank facility to fund the purchase. Both companies said the deal was still subject to regulatory approval by the authorities in Britain and Germany.