A financial savings and retirement providers group backed by Apollo World Administration is plotting a multibillion pound takeover of Pension Insurance coverage Company (PIC), one of many Metropolis’s largest specialist insurers.
If efficiently accomplished, the deal – which bankers estimate could possibly be price between £4bn and £5bn – would signify a landmark transaction within the pension danger switch market.
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Corporations akin to PIC, Authorized & Common and Rothesay take over firms’ outlined profit pension schemes and the property behind them, and have grown considerably within the final decade.
RSA, the insurer, and British American Tobacco are among the many company names with which PIC has transacted.
It has additionally signed agreements with Chemring and Qantas.
PIC’s shareholders embody CVC Capital Companions, BlackRock-owned HPS, a subsidiary of the Abu Dhabi Funding Authority and Reinet, a automobile created from the restructuring of luxurious items group Richemont.
Additional particulars of a possible deal between Athora and PIC, together with its pricing and construction, have been unclear on Friday.
Apollo beforehand checked out a suggestion for PIC in 2023, with rival bidders together with Carlyle and KKR additionally rising.
The marketplace for BGL annuities has exploded lately as firms search to dump quite a lot of pension-related monetary dangers.
PIC not too long ago introduced the retirement of its long-serving chief government, Tracy Blackwell, and has but to call her successor.
Spokespeople for Apollo and PIC declined to remark.
