European insurer Athora Holding Ltd. announced Friday that it had entered into an agreement with the shareholders of the Pension Insurance Corporation Group to acquire the insurer of U.K. defined benefit schemes for 5.7 billion pounds ($7.78 billion).
Pension Insurance Corporation, a part of PICG, will become the U.K. insurance business of Athora, and will continue to operate under the PIC brand.
PIC manages 50.9 billion pounds ($69.44 billion) in assets, insuring the pensions of 400,000 beneficiaries. Athora manages and administers a combined 76 billion euros ($89 billion) in assets for 2.8 million policyholders.
PIC is one of the U.K.’s largest pension risk transfer providers; the third largest by volume in 2024 with 17% of PRT market share in the country, according to research from Lane Clark & Peacock.
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“With Athora backing us through our next phase of growth as their U.K. insurance business, we will be able to provide more options to the trustees of defined benefit pension schemes and invest more in the U.K. economy and infrastructure,” said Tracy Blackwell, CEO of PIC, in a statement.
“The pension risk transfer market is vital to the wellbeing of millions of U.K. pensioners and the allocation of tens of billions of pounds of investment into the U.K.’s economy,” Blackwell continued. “This acquisition and the potential for growth that it represents is, in our view, the strongest possible recognition of the value and importance of the pension risk transfer market, the sector that PIC helped to create and continues to lead.”
The acquisition comes as the U.K.’s Labor government this week introduced legislation—the Pension Schemes Bill—that, among other goals, seeks to entice more pension capital into U.K. growth-related assets.
PICG is being purchased from current shareholders which include investment manager Reinet Fund S.C.A., F.I.S., which hold 49.5% of shares, and an unidentified subsidiary of the Abu Dhabi Investment Authority (18.4% of shares), CVC Capital Partners (17.4%) and BlackRock’s HPS Investment Partners (10.2%). Another 4% of the insurer’s shares are owned by employees and others.
Apollo Global Management and its insurance and retirement services unit Athene own a minority stake in Athora, along with an unidentified subsidiary of the Abu Dhabi Investment Authority.
PIC will benefit from access to Apollo’s resources, according to a statement from Athora. This includes enhanced asset-origination capabilities in private investment grade credit.
“Together, Athora and PIC believe the combination will accelerate scaled, high-grade financing in the U.K. market, increasing productive investment in the economy and supporting retirement outcomes for pensioners,” the statement said.
The acquisition is expected to close in early 2026, pending regulatory approval.
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