Apollo-backed group makes £5.7bn swoop for Pension Insurance Corporation
Athora – the European insurance group backed by US private equity giant Apollo – has struck a £5.7bn takeover deal for the UK’s Pension Insurance Corporation (PIC).
The acquisition will create a group with combined assets worth near £112m and covering the pensions of more than three million people across Europe.
The takeover marks one of the single biggest corporate transactions in the UK this year, topping the £4.1bn offered for precision instruments group Spectris by private equity group KKR this month.
Athora and PIC have eyed further investment in UK housing and infrastructure as a result of the tie-up.
PIC, which is a part of a 12-year joint venture with the Government’s housing agency, plans to deliver 3,000 energy efficient homes that are suitable for the rental market.
The UK group runs the pensions of 400,000 Brits and is a major investor in UK assets, with £13.8 billion in UK housing and infrastructure developments and a total portfolio of £50.9 billion.
Athora spans its insurance operations across the Netherlands, Belgium, Germany and Italy.
PIC eyes more risk transfer deals
Apollo, a New-York based investment group, has stakes in parcel giant Evri and Wagamama owner the restaurant.
The takeover of PIC will result in it having a single owner for the first time in its 20-year history, due to it currently being owned by numerous investors.
Both firms have said the deal will help PIC price more pension risk transfer deals, where it takes over other firms’ pension plans and pays their retirees.
Most recently, PIC has partnered with British shoe retailer Clarks, global energy firm TotalEnergies and recruitment giant Hays.
The acquisition will be subject to regulatory approval and is expected to be completed in early 2026.
Athora’s chief executive Mike Wells said: “As our UK subsidiary, PIC will be the largest business within the Athora Group and we intend to invest in the business and its people to support that growth in the UK pension risk transfer market.
“We have great confidence in the long-term strengths of the UK: its retirement market, regulatory and policy framework, and economic prospects.”
PIC’s chief executive Tracy Blackwell 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 UK housing 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.”