Lloyds TSB Group plc has announced that its subsidiary Scottish Widows plc has reached agreement to sell Abbey Life Assurance Company Limited to Deutsche Bank AG for a cash consideration of £977m, upon completion. This represents 104 per cent of Abbey Life’s European Embedded Value (£941m) as at 30 June 2007. Abbey Life’s IFRS net assets at the same date totalled £673m. Profit before tax from the sale, after costs, of approximately £290m (tax: nil), less any accrued profits prior to completion, is expected to be recognised in Lloyds TSB Group’s accounts for the year ended 31 December 2007. The transaction is conditional upon regulatory approval, with completion expected in the second half of 2007.  Abbey Life, a subsidiary of Scottish Widows, is a UK life operation which has been closed to new business since 2000. As at 31 December 2006, Abbey Life managed £12bn of assets in respect of 1.2 million policies. In the year ended 31 December 2006, Abbey Life’s attributable profit, on an IFRS basis, was £76m.  Scottish Widows Investment Partnership has entered into a ten year agreement to continue to manage Abbey Life’s funds.  Eric Daniels, Group Chief Executive, Lloyds TSB Group commented “We conducted a review of Abbey Life and came to the conclusion that a sale of the business is in the best interest of the Group, as well as Abbey Life’s policyholders and staff.  We expect the proceeds of the sale, net of costs, to be distributed from Scottish Widows to Lloyds TSB Group in line with Lloyds TSB's objective to continue to improve its capital efficiency.”  Lehman Brothers and Morgan Stanley acted as financial advisers to Lloyds TSB on this transaction.