A consortium led by Allianz SE, BlackRock, and Japan’s T&D Holdings will acquire Viridium Group, a German life insurance consolidator, for €3.5bn from private equity firm Cinven.
Generali Financial Holdings and Hannover Re will continue as investors, while Cinven will exit after more than a decade of involvement.
Viridium will maintain its independence and current management, focusing on consolidating and managing life insurance portfolios.
T&D Holdings will hold the largest share, and the structure allows for additional future investors. The transaction, subject to regulatory approval, is expected to close in the second half of the year.
- Allianz, BlackRock and T&D Holdings invest in Viridium Group. Generali Financial Holdings and Hannover Re remain investors in Viridium joining the Consortium. Cinven will exit its investment after more than ten years
- Viridium will continue to operate as an independent, stand-alone platform for the management of closed life insurance portfolios
- The ownership by top-tier insurers, asset managers and other long-term financial investors will further strengthen Viridium’s position as a leading European life insurance consolidator, supporting it to ensure a financially secure future for its existing 3.4 mn and future policyholders
- This partnership will contribute to the development of the European closed-life market and will further provide the European insurance industry with optionality for the management of closed life-books
- Viridium’s policyholders will benefit from elevated insurance and asset management capabilities, which will also support Viridium’s ability to capitalize on the growth opportunities of a fragmented European life insurance industry
- Viridium’s insurance business is expected to continue generating stable earnings and attractive financial returns for its shareholders, with significant growth opportunities in Germany and Europe as the business continues to scale
An Allianz spokesperson stated that the consortium would provide financial resources and long-term commitment to Viridium, expecting stable earnings and growth in Germany and Europe.
Viridium’s spokesperson added that the company would continue acquiring life insurance portfolios, with France identified as a potential market (see Life Insurance & Retirement Savings. Forecast for the U.S. & Europe).
Under the new ownership structure, Viridium remains an independent platform which will leverage its capabilities to acquire additional life insurance portfolios in Germany and Continental Europe,. France is of interest, for example.
The deal strengthens Viridium’s position as a European consolidator and ensures financial security for its 3.4 mn policyholders. The partnership will support the development of the closed-life market and offer the insurance industry solutions for managing closed blocks of business.
Viridium currently manages €67bn in assets and employs about 900 people. Cinven originally invested in Heidelberger Leben in 2014, targeting consolidation in the fragmented German life sector (see how European Insurers Support Savings & Investments Union).
Over the years, Viridium invested €700mn in technology and refined asset management strategies to boost returns.
In 2024, Viridium pulled out of a deal to acquire a life insurance book from Zurich Insurance Group due to regulatory concerns over its ownership structure, following a decision by Germany’s financial regulator BaFin.
“The acquisition of an insurance portfolio of Zurich Group Germany by Viridium Group will not proceed as planned due to considerations relating to Viridium’s current ownership structure,” the life insurance acquirer said in a statement. “We regret this as the transaction would offer clear benefits for customers.”
It was not Viridium’s decision not to proceed with the deal. Germany’s financial services regulator BaFin decided the transaction cannot proceed as planned due to the Viridium ownership structure considerations, it said.
Cinven received advisory support from Goldman Sachs International, Fenchurch Advisory, Freshfields, KPMG, Willis Towers Watson, Bearing Point, Capgemini, EY, and Deloitte throughout the transaction.
