Latest news with #Athora
Daily Mail
06-08-2025
- Business
- Daily Mail
Pension deals boost profits at Legal & General as employers look to offload defined benefit schemes
Britain's biggest money manager Legal & General saw profits jump as it cashed in on a boom in buyouts of UK pension funds. The buyouts, which are also known as pension risk transfers (PRTs), are when businesses pay financial firms to take over the running of legacy pension schemes. It is one of L&G's most lucrative divisions, with the FTSE 100 firm landing £3.4billion worth of PRT deals in the first six months of the year, up from £1.5billion in 2024. It helped the group, which manages over £1 trillion in assets, make a profit of £859million for the period, 6 per cent higher than last year. L&G boss Antonio Simoes said it planned to expand further into PRT, saying it was eyeing £42billion worth of deals. Employers are keen to offload defined benefit pension schemes, most of them long closed to current employees but which still incur costs. The surge in PRT deals also comes despite Chancellor Rachel Reeves introducing measures to try to encourage employers to keep running defined benefit schemes in the hope they will invest in areas that boost the UK economy. So lucrative is the pension transfer market it has attracted new rivals to L&G. In July, Athora, a European insurer owned by US private equity giant Apollo Global, snapped up Pension Insurance Corp, one of the UK's biggest players in PRT, for £5.7billion. And last week Canadian outfit Brookfield swooped on LSE-listed retirement saving specialist Just Group with a £2.4billion bid. But Simoes said L&G was 'firmly on track' to hit targets and reiterated plans to hand £5billion to its shareholders over three years. The shares dropped 2 per cent, or 5.3p, to 256.2p as analysts were disappointed that its solvency ratio, a key measure of financial strength, had dropped to 217 per cent from 223 per cent. L&G's push into the pensions market comes after Simoes warned Britons were not saving enough for retirement and called on the Government to lower the age of auto-enrolment in workplace schemes to 18, from 22. 'We really need to tackle how much we as individuals and employers are contributing,' he told the Daily Mail. Last month, the Work and Pensions Secretary, Liz Kendall, announced a review of the state pension age alongside a wider probe into retirement savings.
Telegraph
31-07-2025
- Business
- Telegraph
Canadian investment giant swoops for British pensions in £2bn deal
Canadian investment giant Brookfield is poised to manage British savers' money after the company struck a deal to buy London-listed Just Group for £2.4bn. Toronto-based Brookfield will begin 'providing advice on Just's investment strategy, support for Just's investment risk and portfolio management, and related management services'. It will also kick off a review of Just Group's £27bn of assets, and 'may look to reposition such assets and/or transition management of such assets to Brookfield Asset Management.' FTSE 250 member Just Group sells annuities to pensioners, offers products including lifetime mortgages, and buys pension schemes from other providers. It manages assets totalling £27bn and has more than 700,000 customers. Brookfield's move comes as global investors bet that relatively high interest rates will encourage final salary pension schemes to sell up to companies like Just Group. Many companies would rather offload the liabilities associated with a final salary scheme to a specialist provider like Just Group. Brookfield hopes to take a bigger slice of so-called pension risk transfer market, with £40bn to £50bn of deals taking place each year. It comes weeks after the £5.7bn acquisition of Pension Insurance Corporation (PIC) by European insurer Athora. Andreas Van Embden, analyst at Peel Hunt, said the 'consistent flow' of deals in the bulk purchase annuity market was attracting international attention. 'The pension industry's deficit has significantly narrowed and many funds have a surplus, so it is more attractive to do deals now - they are better priced and the market is more competitive,' he said. 'So transfer volumes will continue at more favourable pricing for trustees. And rising interest rates make individual annuities more attractive, because you get a higher income in later life.' Instead of seeking to grow organically, 'it makes much more sense to buy a specialist in the UK - Just Group - put capital behind it and try to grow the business,' he said. At the same time the Canadian parent may be able to invest the pension assets more profitably. 'Annuity companies are desperate to get access to alternative assets and high-yielding assets - Brookfield could help there,' said Mr Van Embden. Brookfield, which previously employed Mark Carney, the former Governor of the Bank of England and now prime minister of Canada, established a UK unit called Blumont earlier this year to compete in the market. It will merge the entity with Just Group. Sachin Shah, chief executive of Brookfield Wealth Solutions, said the deal would help the company grow on this side of the Atlantic. 'The acquisition of Just will accelerate our growth ambitions for the UK, a core region for us given its status as one of the world's pre-eminent pension markets combined with highly attractive investment opportunities,' he said. The £2.4bn purchase price represents a premium of 75pc to Just Group's share price before the deal was announced. Shares surged 67pc on confirmation of the deal.
Times
05-07-2025
- Business
- Times
Staff at Pensions Insurance Corporation to share £250m windfall
Hundreds of staff at Pension Insurance Corporation (PIC) are set to share in a windfall of up £250 million after the fast-growing pensions buyout firm was sold to a privately-owned European insurer for £5.7 billion. The sale to Athora, an insurance business minority-owned by private equity house Apollo, is regarded as the biggest takeover deal in the UK this year. Filings at Companies House indicate that about 280 individuals own shares in PIC, including the chief executive, Tracy Blackwell, whose stake appears to be worth an estimated £25 million. A former Goldman Sachs banker, she was one of the first five employees of PIC when it was set up 20 years ago by the financiers Edi and Danny Truell. The business, known for its penguin logo, now employs 600 people. PIC buys out workplace pensions and essentially takes on the risk of the schemes. It then makes investments in major infrastructure projects such as affordable housing, urban regeneration projects and renewable energy. These are types of projects that chancellor Rachel Reeves has been encouraging the pension fund industry to back. She welcomed the takeover by Athora as a sign that 'Britain is attracting billions of pounds of investment'. 'In particular, we welcome investment in housing and infrastructure so that businesses can expand and communities can prosper in all parts of the country,' said Reeves. PIC manages £50.9 billion for 400,000 people and has invested £30 billion in the UK. It has bought out the pension schemes of major companies such as Next and Rentokil. The transaction with Athora means that PIC will be owned by a single owner for the first time. Reinet Investments, backed by the South African billionaire Johann Rupert, owned 49.9 per cent of the business. It said that since it invested in 2012 there had been a 900 per cent increase in the size of the firm. Other notable investors were CVC, the Abu Dhabi sovereign wealth fund ADIA and HPS Investment Partners. Staff and other shareholders had a stake of about 4.5 per cent. Blackwell's retirement from PIC was announced in February. She had spent 10 years as chief executive. She is expected to stay on as an adviser to Athora. When the deal was announced on Thursday she described it as 'amazing growth story over the past two decades'. Athora is run by Mike Wells, a former chief executive of the FTSE 100 insurance group Prudential. PIC will become the largest subsidiary in the business and also retain its brand. PIC did not comment on the potential size of the stakes.
Yahoo
04-07-2025
- Business
- Yahoo
Athora agrees to acquire PICG for £5.7bn
Athora, a European savings and retirement services company, has signed a definitive agreement to acquire Pension Insurance Corporation Group (PICG) for approximately £5.7bn ($7.8bn). Upon completion, PICG will become Athora's UK insurance business, operating under the Pension Insurance Corporation and Penguin brands. This acquisition marks the company's first UK insurance venture, expanding its presence in the UK market. Athora reached the agreement with PICG shareholders, including Reinet Fund, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and funds managed by CVC Capital Partners and HPS Investment Partners. Athora, backed by permanent capital owners such as Apollo Global Management and Athene Holding, aims to enhance its growth through this acquisition. PICG will become Athora's UK subsidiary, retaining its experienced team and commitment to customer service. The acquisition will provide PICG with broader resources, long-term growth capital, and enhanced asset origination capabilities, particularly in private investment-grade credit, leveraging Athora's strategic relationship with Apollo. Athora Group CEO Mike Wells said, "We are pleased for PICG to become Athora's first UK insurance business, maintaining its great team, brand and utmost commitment to serving its customers. 'The acquisition by Athora will enhance access to long-term growth capital and asset origination capabilities, enabling PIC to serve more of the UK savings and retirement market, where it has already established itself as a top three provider in pension risk transfer." The acquisition will create one of Europe's largest insured savings and retirement services businesses, building on Athora's existing subsidiaries in the Netherlands, Italy, Belgium, and Germany. Athora's AuMA will increase to approximately €135bn, a 78% rise from year-end 2024 levels. Wells also noted, 'Today, PIC is a significant investor in the UK 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.' The acquisition will be funded primarily by equity and long-term bank debt, with Athora expecting to maintain a solvency ratio above its target levels. The transaction is anticipated to close in early 2026, contingent upon customary closing conditions and regulatory approvals from the PRA. "Athora agrees to acquire PICG for £5.7bn" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
03-07-2025
- Business
- Yahoo
European savings and retirement services group Athora to acquire Pension Insurance Corporation Group
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 LONDON, July 3, 2025 /PRNewswire/ -- Athora Holding Ltd. (Athora or the Group) and Pension Insurance Corporation Group Limited (PICG), one of the UK's leading pension solutions providers, today announced that Athora and the shareholders of PICG – Reinet Fund S.C.A., F.I.S.; a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA); funds managed by CVC Capital Partners (CVC) and HPS Investment Partners (collectively, the Consortium) – have entered into a definitive agreement for Athora to acquire PICG for approximately £5.7 billion. Upon completion, PICG will become Athora's UK insurance business, operating under the Pension Insurance Corporation (PIC) and Penguin brands. Athora is a leading European savings and retirement services business with €76 billion of Assets under Management and Administration (AuMA), serving approximately 2.8 million policyholders. Athora is backed by permanent capital owners, including a strategic minority investment by Apollo Global Management and Athene Holding Ltd, and long term institutional investors such as a wholly owned subsidiary of ADIA. As a result of the transaction, PICG will become Athora's UK subsidiary, maintaining its long tenured team, dedication to customer service, robust capitalisation and disciplined investment philosophy. In addition, PIC is poised to benefit from broader resources, long-term growth capital, and enhanced asset origination capabilities, including in private investment grade credit resulting from Athora's strategic relationship with Apollo. Together, Athora and PIC believe the combination will accelerate scaled, high-grade financing in the UK market, increasing productive investment in the economy and supporting retirement outcomes for pensioners. The acquisition of PICG by the Athora Group will create one of Europe's largest insured savings and retirement services businesses, building on existing subsidiaries in the Netherlands, Italy, Belgium and Germany. Commenting on the acquisition, Mike Wells, Athora's Group Chief Executive Officer, said: "We are pleased for PICG to become Athora's first UK insurance business, maintaining its great team, brand and utmost commitment to serving its customers. The acquisition by Athora will enhance access to long-term growth capital and asset origination capabilities, enabling PIC to serve more of the UK savings and retirement market, where it has already established itself as a top three provider in pension risk transfer." Wells continued, "Today, PIC is a significant investor in the UK 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." Tracy Blackwell, CEO of PIC, said: "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. "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[1] billion 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. About PIC: The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure retirement incomes through comprehensive risk management and excellence in asset and liability management, as well as exceptional customer service. At year end 2024, PIC had insured 400,000 pension scheme members and had a portfolio of £50.9 billion, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. PIC has made total pension payments of £16.2 billion to its policyholders and has invested £13.8 billion in UK private investments, including housing and infrastructure, creating considerable social value. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit About Athora: Since inception in 2018, Athora has grown to be one of the leading savings and retirement services providers in continental Europe. Athora has primary insurance operations in the Netherlands, Belgium, Germany and Italy. As of year-end 2024, Athora's AuMA totalled €76 billion, representing the savings of 2.8 million customers. Athora has completed seven M&A transactions, alongside nine Pension Risk Transfer transactions in the Netherlands. Athora has a strong track record of providing attractive outcomes for its customers, reflecting the merits of its business model and access to differentiated investment capabilities through a strategic partnership with Apollo Global Management. Disclaimer: This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation (Regulation 596/2014). For the purposes of Market Abuse Regulation (EU) 596/2014 and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Ben Adams, Director of External Communications for Athora Holding Limited. Certain information contained herein may be "forward-looking" in nature. Due to various risks and uncertainties, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking information. As such, undue reliance should not be placed on such information. Forward-looking statements may be identified by the use of terminology including, but not limited to, "may," "will," "should," "expect," "anticipate," "target," "project," "estimate," "intend," "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology. [1] GBP/EUR exchange rate: 1.16891 as at 30 June, 2025 (SimCorp Accounting) Not for release, publication or distribution in whole or in part in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. Logo - View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
