Life insurer Phoenix's chairman to step down, join RBS
(Adds analyst comment, details)
By Richa Naidu
Feb 26 (Reuters) - British life insurer Phoenix Group Holdings said Chairman Howard Davies would step down at the end of August to head the board at Royal Bank of Scotland (LSE: RBS.L - news) Plc.
Phoenix (LSE: PHNX.L - news) , which makes money by buying European life insurers that are closed to new customers and running them more efficiently, has begun looking for a new chairman, it said in a statement.
The company has been operating in a closely-watched market in recent months due to increasing consolidation in the global life insurance industry, most notably the $8.8 billion takeover of life group Friends Life by Aviva (Other OTC: AIVAF - news) .
Due to its private equity-like business model and the strong cash position it forecast in October, Phoenix is seen as a potential acquirer in the current buy-or-be-bought environment.
Berenberg analyst Matthew Preston said Davies' move would merely mean an "unhelpful distraction" for Phoenix, and that the company had ample time to find a replacement.
(Reporting by Richa Naidu in Bengaluru; Editing by Anupama Dwivedi)