Cinven is finalizing the sale of Viridium Group, Germany’s largest life insurance administrator, to a consortium led by Allianz for €3.5 bn.
The transaction is set to close next week, marking a major exit for Cinven after more than a decade of ownership.
The acquiring consortium includes Allianz, BlackRock, Japanese life insurer T&D, and Generali, which already holds a 10% stake in Viridium. Hannover Re, a co-founder of Viridium with Cinven, may also sell its stake, either partially or fully.
Cinven acquired a majority stake in Viridium in 2013 and developed the company into a leading player in the German life insurance market.
Viridium specializes in consolidating closed-book life insurance portfolios, establishing itself as a dominant force in the sector.
The sale aligns with Cinven’s strategy of investing in insurance and financial services. The transaction, expected to close next week, signals strong interest from institutional investors in Europe’s life insurance consolidation market.
Hannover Re’s CFO, Clemens Jungsthoefel, stated that the transaction would not materially affect the reinsurer’s earnings. Allianz and Cinven declined to comment, while BlackRock and T&D were unavailable for remarks.
The deal highlights the value of established life insurance administrators with large portfolios, as major players seek to strengthen their market positions.
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.
