According to figures quoted in the past, Abbey Life’s embedded value was close to 2 billion pounds with a price tag of 1 billion pounds, Shore Capital analyst Eamonn Flanagan wrote in a note on Friday.
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The companies are set to finalize the deal within the next couple of weeks after Phoenix emerged as the lead bidder, people with knowledge of the plans said on Thursday.
Bannister said Phoenix would look at other opportunities if the deal with Deutsche Bank fell through.
Phoenix Group Holdings, Britain’s largest owner of life insurance funds, said it was in advanced discussions with Deutsche Bank to acquire the German lender’s United Kingdom insurance business, Abbey Life Assurance.
Abbey Life, which was bought by Deutsche Bank for £977m in 2007, is valued at about £1 billion, sources told Reuters in June. Officials for Deutsche Bank declined to comment.
As stated at the time of the interim results on 25 August 2016, Phoenix continues to explore further acquisition opportunities in the United Kingdom closed life sector.
Abbey Life is among several United Kingdom life assurance businesses that are being investigated by the Financial Conduct Authority over its practices on exit fees. The results of the probe may compel the insurer to pay fines or compensation to policyholders.
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Shares in Phoenix were up 0.5 percent at 846 pence at 1202 GMT on the London Stock Exchange.
