UK's Run-off Market Holds Billions in Euros
In a significant move, Athora, a leading European savings and retirement services group, has agreed to acquire Pension Insurance Corporation Group (PICG) for approximately £5.7 billion. The definitive agreement, announced on July 3, 2025, marks the acquisition of the UK's specialist insurer of defined benefit pension schemes.
### Background and Strategic Details
Athora, which already operates insurance businesses in the Netherlands, Italy, Belgium, and Germany, will see PICG become its UK insurance business, operating under the existing PIC and penguin brands. This deal creates one of Europe's largest insured savings and retirement services groups, with total assets exceeding €130 billion and serving more than three million savers and retirees. PIC will represent 45% of Athora’s assets under management and administration and is expected to be the Group’s largest and fastest-growing business.
### Ownership and Investor Involvement
Prior to the acquisition, PICG was owned by a consortium that included Reinet Fund S.C.A., a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), funds managed by CVC Capital Partners (CVC), HPS Investment Partners, and South African billionaire Johann Rupert. Collectively, these investors formed the consortium that agreed to sell PICG to Athora.
Athora, on the other hand, is supported by permanent capital owners, notably including a strategic minority investment by Apollo Global Management and Athene Holding Limited, and long-term institutional investors such as the wholly owned subsidiary of ADIA.
### Strategic Benefits and Synergies
The acquisition positions PICG to benefit from Athora’s broader financial resources and long-term growth capital. Enhanced asset origination capabilities are expected, particularly leveraging Athora’s strategic relationship with Apollo to expand investments in private investment-grade credit. The combination aims to increase high-grade financing in the UK market, supporting investment in housing, infrastructure, and positive retirement outcomes for pensioners.
PICG’s long-tenured team, customer service focus, disciplined investment philosophy, and robust capitalization will be maintained under Athora’s ownership. The acquisition is expected to generate synergies and cost savings for both companies.
In sum, the £5.7 billion acquisition of PICG by Athora combines complementary strengths to create a pan-European retirement services powerhouse, with significant backing and involvement from major global investors including Apollo, CVC, HPS, and ADIA. This strategic move enhances Athora’s footprint in the UK and enables expanded pension and investment solutions.
The acquisition of PIC by Athora will significantly expand Athora's presence in the UK market, marking a significant transaction in the UK insurance market and the largest deal since 2015. The acquisition is expected to be completed by the end of 2022, subject to regulatory approvals. PIC has approximately £70 billion in assets under management.
The acquisition of PICG by Athora, which is anticipated to be completed by the end of 2022, subject to regulatory approvals, will be financed by long-term institutional investors such as the wholly owned subsidiary of ADIA, along with strategic minority investment by Apollo Global Management and Athene Holding Limited. As a result, the combined entity will have total assets exceeding €130 billion and will operate as Athora's UK insurance business, serving more than three million savers and retirees.
