SunLife provides financial protection products directly to the over-50s market in the UK. 

In an update, Phoenix said following a strategic review, the business was “no longer core” to its vision of becoming the UK’s leading retirement savings and income business. 

It said it received some interest from third parties but there was “no certainty at this stage that a disposal will occur”. 

Phoenix acquired SunLife in 2016 and its previous owner Axa’s UK investments, pensions and insurance business in a £375m transaction. 

In its financial results for 2023, SunLife reported a profit after tax of £16m. 

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Last year, it teamed up with Key Group to develop a range of lifetime mortgages that would be funded by Phoenix Group and distributed through Key’s advisers on a fee-free basis. 

Phoenix Group closed its 2023 financial period with around 12 million customers and a profit before tax of £617m, which was 13% higher annually. The group attributed this to growth in its pensions and savings business.