Phoenix Life today announces that it has completed a local authority investment deal. The Midlands-based life and pensions company has entered into agreements lending Birmingham City Council £45 million to assist the council to build more homes in the local area.

Phoenix Life has agreed to lend the council funds at mutually beneficial rates of interest, supporting the Company’s annuity investment strategy and enabling the Company to invest in its local community. Local Authority Loans provide the life and pension industry with predictable cashflows in excess of gilts to back annuity payments, and ensure a diversified portfolio. This is the Company’s first local authority investment deal following the introduction of capital regime, Solvency II.

The Government-approved Birmingham Development Plan has highlighted the need for 89,000 new homes by 2031 to tackle a local housing shortage and meet predicted demands.

Phoenix Life’s Chief Executive, Andy Moss said, “Working in partnership with Birmingham City Council has enabled Phoenix to not only meet diversification targets for our annuity portfolio, but to also support the council’s house building programme.”

“I am delighted that as a major employer in the Birmingham area, we have been able to arrange this deal. I would hope to see further projects of this nature in the future.”

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Enquiries

Shellie Wells
Head of Corporate Communications
Phoenix Group
020 3735 0922 / 07872 414 137
shellie.wells@thephoenixgroup.com

Darcy Lillie
Corporate Communications Assistant
Phoenix Group
020 3735 0102 / 07814 773 280
darcy.lillie@thephoenixgroup.com

Notes to editors

Phoenix Group is the UK’s largest specialist consolidator of closed life funds with over 6.1 million policyholders and £76 billion of assets held by the Group’s life companies, including the acquired Abbey Life, AXA Wealth and SunLife businesses. The Group employs around 1,300 people split across the Group, with around 600 based at Wythall, its main operating centre.