Abbey Life, a UK life assurance company, has been closed to new business since 2000, and comprises primarily of unit-linked life and pension policies and annuities.
Michele Faissola, head of global rates and member of global markets executive committee at Deutsche Bank, commented: We are confident that Abbey Life will deliver stable returns that will meet our internal investment hurdles and will further advance Deutsche Bank’s position as a leading provider of capital markets solutions to the insurance industry.
According to The Telegraph, Lloyds TSB will use the proceeds from the sale of Abbey Life to increase its surplus capital. This is expected to amount to GBP1.2 billion following the sale, which is expected to complete during the second half of 2007.
Reuters also reported a 3% rise in Lloyds TSB’s shares, after the company announced the sale of Abbey Life alongside an increase in earnings for the first half of its fiscal year.
