The Swiss reinsurer Swiss Re sells its UK division ReAssure to the Phoenix Group insurance services provider. That was confirmed on Friday. The deal has a value of 3.2 billion pounds.

Swiss Re canceled an IPO from ReAssure earlier this year due to difficult market conditions and weak demand from investors. ReAssure should have valued that move at around £ 3.3 billion. Swiss Re recently said it wants to reduce its stake in the branch to less than 50 percent.

The British company Phoenix has a market value of 5.3 billion pounds and last year bought the insurance branch of Standard Life Aberdeen. The transaction with Swiss Re is settled in shares and cash.