As it looks to simplify its European operations, Phoenix Group has announced the sale of Ark Life Assurance Company DAC to Irish Life Group Limited.

The deal is for a total cash consideration of €230 million (around £197 million) and is payable on completion by early 2022, subject to anti-trust and regulatory approvals. According to a statement from the group it should not materially impact its solvency or long-term free cash positions.

Announcing the move, Phoenix outlined that the deal would accelerate the cash release from the business – and that it expects to redeploy the capital into higher return growth opportunities that can drive incremental cash generation.

It is also said to be looking to progress a range of management actions to maximise shareholder value for the remaining European business, Standard Life International DAC.

Ark Life is a closed book of business which manages heritage savings and protection products in Ireland. It was originally acquired by Phoenix as part of the ReAssure deal in 2020.