Last month, Just Group revealed it was looking to reduce its balance sheet exposure to UK property with the sale of a portfolio of lifetime mortgages. Pension insurance company Rothesay purchased the portfolio for £334m.
The equity release mortgages sold in the latest transaction are expected to further Phoenix’s position as a funder and manager of equity release assets in the UK.
The acquisition was led by the company’s Retirement Solutions business which specialises in equity release and bulk purchase annuities.
Andy Curran, chief executive officer at Phoenix Group, said equity release was an important option for financial planning in later life.
The group has been active in the sector since 2016, with about a third of its £10.7bn diversified illiquid asset portfolio comprising of equity release mortgages as of June this year. The portfolio is also made up of private placements, UK local authority loans, commercial real estate and infrastructure debt.
Curran said: “We’re delighted to have acquired this portfolio and to be securing the retirement plans for more borrowers.
“This is a testament to the strength and expertise of our Retirement Solutions team led by Tom Ground and you should expect to see more activity from us in the equity release space in the coming months and years.”
He added: “This purchase is consistent with our group vision of helping people on their journey to and through retirement. Alongside pension savings, equity release is a valuable part of that toolkit for a growing number of people. This portfolio purchase is also supportive of our strategy to grow our bulk purchase annuity business.”