Phoenix Group Holdings PLC (LSE:PHNX), the pensions giant, is one of the top fallers in the FTSE 100 today after the market reacted negatively to its plans to sell its SunLife business.
Shares dropped by around 1.5% after the company said SunLife, the over-50s financial services company, was “no longer core to the delivery of its vision”.
With hopes of becoming the UK's top pension business, Phoenix said it recieved interest from potential SunLife suitors, but nothing material as of yet.
Analysts have had mixed reactions to the move, with Liberum calling it "a little odd" while Berenberg said it was a "positive step".
In April, the group suffered a double downgrade from brokers at Barclays, which claimed its poor cash generation could cause problems.
"Phoenix faces insufficient cash from operations alone to support management's targets, a weaker capital position than peers, and a change in strategy from historical areas of strength to areas where the group is not meaningfully differentiated, in our view," Barclays said.