BY Fraser Tennant
In a landmark UK pension deal, pan-European savings and retirement services group Athora is to acquire specialist UK insurer Pension Insurance Corporation Group Limited (PICG) in a transaction valued at £5.7bn.
Under the terms of the definitive agreement, the acquisition – which is expected to close in early 2026, subject to customary closing conditions, including regulatory approvals from the Prudential Regulation Authority – will be funded primarily by equity as well as long term bank debt.
Backed by US alternative asset manager Apollo Global Management and Athene Holding Ltd, as well as a number of long term institutional investors, Athora has €76bn of assets under management and administration and serves approximately 2.8 million policyholders.
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.
“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,” said Mike Wells, group chief executive of Athora. “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.”
Upon completion of the transaction, PICG will become Athora’s UK insurance business, operating under the Pension Insurance Corporation (PIC) and penguin brands.
“PIC has had an amazing growth story over the past two decades and is now one of Britain’s preeminent pension businesses,” said Tracy Blackwell, chief executive of PIC. “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.”
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.
Ms Blackwell concluded: “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.”
News: Apollo-backed Athora to buy Pension Insurance Corporation for $7.8 bln