Athora Holding, a European savings and retirement business, agreed to acquire the United Kingdom’s Pension Insurance Corp. Group (PICG) for about £5.7 bn.
Athora reached the agreement with PICG’s shareholders: Reinet Fund S.C.A., F.I.S.; a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA); and funds managed by CVC Capital Partners and HPS Investment Partners.
After the transaction closes, PICG will become Athora’s U.K. insurance business and continue operating under the Pension Insurance Corp. and Penguin brands.
Following the acquisition, PIC is expected to benefit from broader resources, long-term growth capital, and improved asset-origination capabilities, according to the companies.
- Ownership of Pension Insurance Corporation Group (“PICG”), ultimate parent company of the specialist insurer of UK defined benefit pension schemes Pension Insurance Corporation (“PIC”), to transition to a single and strategic owner
- PICG will become the UK insurance business of Athora and continue to operate under the PIC (and penguin) brand, benefitting from increased access to long-term growth capital and enhanced asset origination expertise as part of Athora
- Acquisition to create a pan-European savings and retirement services champion, establishing a leading position in the UK Pensions market to complement Athora’s existing operations in the Netherlands, Belgium, Italy and Germany
The combination aims to accelerate scaled, high-grade financing in the U.K. market, increase investment in the economy, and support retirement outcomes for pensioners.
Mike Wells, chief executive officer of Athora, stated that acquiring PIC will expand access to long-term growth capital and asset origination, enabling PIC to serve more of the U.K. savings and retirement market, where it is already a top three provider in pension risk transfer.
The acquisition by Athora will enhance access to long-term growth capital and asset origination capabilities, enabling PIC to serve more of the U.K. savings and retirement market, where it has already established itself as a top three provider in pension risk transfer
Mike Wells, chief executive officer of Athora
He added that PIC is already a significant investor in the U.K. economy and, as part of Athora, will play a larger role in providing long-duration financing for infrastructure and other long-term assets.
“Today, PIC is a significant investor in the U.K. economy and, as part of Athora, we believe it will play an even more meaningful role in providing long-duration financing for infrastructure and other long-term assets,” he said.
The combination will form one of Europe’s largest insured savings and retirement services businesses, building on Athora’s existing operations in the Netherlands, Italy, Belgium, and Germany.
Athora currently manages and administers €76 bn in assets and serves about 2.8 mn policyholders. It is backed by permanent capital owners, including a strategic minority investment from Apollo Global Management and Athene Holding, alongside long-term institutional investors such as a wholly owned subsidiary of ADIA.
“PIC has had an amazing growth story over the past two decades and is now one of Britain’s preeminent pension businesses. This success has been based on a simple purpose, which is to pay the pensions of our current and future policyholders. Athora’s investment is validation of what we have always believed: that PIC’s reputation, strategy, fortress balance sheet, purpose, and most importantly our people combine to make this a unique business in a huge and growing market,” Tracy Blackwell, CEO of PIC, said.
With Athora backing us through our next phase of growth as their UK insurance business, we will be able to provide more options to the trustees of defined benefit pension schemes and invest more in the UK economy and infrastructure.
“The pension risk transfer market is vital to the wellbeing of millions of UK pensioners and the allocation of tens of billions of pounds of investment into the UK’s economy. 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.”
After adjusting for the acquisition, Athora will have approximately €135 bn of AuMA, representing a 78% increase on the year-end 2024 level.
The acquisition will be funded primarily by equity as well as long-term bank debt. Pro forma for the transaction, Athora expects to maintain solvency ratio above its target levels.
The proposed transaction is expected to close in early 2026. Completion of the transaction is contingent upon satisfaction of customary closing conditions, including regulatory approvals from the PRA.
Athora’s shareholder base is comprised of high-quality, long-term minded global investors that share our vision for building a market leading insurance business assisting insurers in facing interest rate, capital, market, operational, and resource challenges.
