Apollo-backed Athora acquires PIC for £5.7bn in landmark UK pension deal
Athora, the European insurance group backed by Apollo, acquired Pension Insurance Corporation (PIC) for £5.7bn, in a deal that significantly expands its footprint in the UK’s pension market.
The transaction marks Athora’s largest acquisition to date and brings the insurer into the UK’s £2tn retirement savings sector.
Athora is acquiring PIC from a high-profile consortium that includes CVC Capital, Reinet Investments, the Abu Dhabi Investment Authority, and HPS Investment Partners.
With £50bn in assets under management and close to 400,000 policyholders, PIC will now become Athora’s largest subsidiary. However, the business will continue to operate independently under its established brand.
“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,” said Mike Wells, Chief Executive of Athora.
The acquisition underscores Apollo’s continued expansion across UK financial services. Recent activity includes a £4.5bn financing commitment to EDF for the Hinkley Point C nuclear project and the acquisition of Restaurant Group, owner of the Wagamama chain.
PIC’s growth under private equity ownership has been substantial. Since Reinet acquired a 43% stake for £400m in 2012, the firm’s assets have grown nearly ninefold. CVC’s 2017 investment has also tripled in value. PIC gained market leadership by acquiring large corporate pension liabilities, including a £6.5bn transfer from RSA in 2023 – the largest of its kind in the UK.
Tracy Blackwell, CEO of PIC, commented, “PIC has had an amazing growth story over the past two decades and is now one of Britain’s pre-eminent pension businesses.”
The acquisition, years in the making, further reflects rising private capital interest in the UK’s insurance sector, with other major players such as KKR and Carlyle also exploring opportunities in the space.