Athora, a European financial savings and retirement companies firm, has signed a definitive settlement to accumulate Pension Insurance coverage Company Group (PICG) for about £5.7bn ($7.8bn).
Upon completion, PICG will change into Athora’s UK insurance coverage enterprise, working below the Pension Insurance coverage Company and Penguin manufacturers.
This acquisition marks the corporate’s first UK insurance coverage enterprise, increasing its presence within the UK market.
Athora reached the settlement with PICG shareholders, together with Reinet Fund, an entirely owned subsidiary of the Abu Dhabi Funding Authority (ADIA), and funds managed by CVC Capital Companions and HPS Funding Companions.
Athora, backed by everlasting capital house owners comparable to Apollo World Administration and Athene Holding, goals to reinforce its progress by means of this acquisition.
PICG will change into Athora’s UK subsidiary, retaining its skilled staff and dedication to customer support.
The acquisition will present PICG with broader assets, long-term progress capital, and enhanced asset origination capabilities, notably in non-public investment-grade credit score, leveraging Athora’s strategic relationship with Apollo.
Athora Group CEO Mike Wells mentioned, “We’re happy for PICG to change into Athora’s first UK insurance coverage enterprise, sustaining its nice staff, model and utmost dedication to serving its prospects.
“The acquisition by Athora will improve entry to long-term progress capital and asset origination capabilities, enabling PIC to serve extra of the UK financial savings and retirement market, the place it has already established itself as a prime three supplier in pension threat switch.”
The acquisition will create one in every of Europe’s largest insured financial savings and retirement companies companies, constructing on Athora’s current subsidiaries within the Netherlands, Italy, Belgium, and Germany.
Athora’s AuMA will enhance to roughly €135bn, a 78% rise from year-end 2024 ranges.
Wells additionally famous, “At present, PIC is a major investor within the UK economic system and, as a part of Athora, we consider it would play an much more significant position in offering long-duration financing for infrastructure and different long-term property.”
The acquisition will likely be funded primarily by fairness and long-term financial institution debt, with Athora anticipating to take care of a solvency ratio above its goal ranges. The transaction is anticipated to shut in early 2026, contingent upon customary closing situations and regulatory approvals from the PRA.
