Deutsche Bank agreed to sell Abbey Life Assurance Co. to Phoenix Life Holdings in a £935 million ($1.2 billion) deal.
The business is held within the Deutsche Asset Management unit.
The deal is subject to regulatory approvals, including by the Prudential Regulatory Authority.
“Deutsche Asset Management will continue to focus on its core businesses of active, passive and alternatives, while this transaction will also strengthen Deutsche Bank's capital position,” said John Cryan, CEO of Deutsche Bank, in a news release Wednesday. “We continue to build a simpler and better Deutsche Bank.”
The expected completion date could not be learned by press time. A spokesman for Deutsche declined to comment.
The move comes as the bank begins negotiations with the U.S. Department of Justice to settle civil claims in connection with the bank's issuance and underwriting of residential mortgage-backed securities and related securitizations activities between 2005 and 2007.
In a statement on its website Sept. 15, Deutsche Bank confirmed “market speculation of an opening position by the DoJ” of $14 billion, and that the Department of Justice had invited a counter proposal from the bank.
“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,” added the statement. “The negotiations are just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.”
Germany's Federal Ministry of Finance denied Wednesday it was preparing rescue plans for the bank.