Athora, a European financial savings and retirement providers firm, has signed a definitive settlement to amass 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 beneath 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, a completely 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 homeowners comparable to Apollo World Administration and Athene Holding, goals to reinforce its development via this acquisition.
PICG will change into Athora’s UK subsidiary, retaining its skilled group and dedication to customer support.
The acquisition will present PICG with broader assets, long-term development capital, and enhanced asset origination capabilities, significantly in non-public investment-grade credit score, leveraging Athora’s strategic relationship with Apollo.
Athora Group CEO Mike Wells stated, “We’re happy for PICG to change into Athora’s first UK insurance coverage enterprise, sustaining its nice group, model and utmost dedication to serving its clients.
“The acquisition by Athora will improve entry to long-term development 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 high three supplier in pension threat switch.”
The acquisition will create one in all Europe’s largest insured financial savings and retirement providers companies, constructing on Athora’s present 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 this time, PIC is a big investor within the UK economic system and, as a part of Athora, we imagine it can play an much more significant function 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 keep up 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.
