French insurance company AXA is to sell its UK investment, pensions and insurance business to Phoenix Group (LON:PHNX).
The deal will cost UK insurer Phoenix £375mln in cash and is expected to complete in the second half of this year.
The sale of Sun Life follows Axa’s decision to exit the UK life and savings market.
In recent months the group has sold off an Isle of Man-based investment bonds business, as well as selling Elevate, which handles around £10bln of UK investments, to Standard Life.
Axa expects to raise £632mln from these divestments, although the sales would reduce the group’s net profits by around €400mln.
Shares in Axa rose to €22.63, while Phoenix shares were up 18p to 868p.