Scottish insurer Standard Life is set to acquire Phoenix Group’s Ignis Asset Management for a reported £400 million.
Phoenix, the UK's largest closed life and pension fund consolidator, said in a statement that “discussions are at an advanced stage, but there is no certainty any transaction will be agreed.”
Acquisition of Ignis, which runs the absolute return government bond fund and has £68 billion in assets under management, could see Standard Life past its rivals Aviva Investors and M&G.
It is still unclear how Standard Life will fund the acquisition. However, the company’s European embedded value operating capital and cash generation in 2013 was £582 million.
Phoenix will release its 2013 annual results on the March 26.