A financial savings and retirement companies group backed by Apollo International Administration is closing in on a near-£6bn takeover of Pension Insurance coverage Company (PIC), one of many Metropolis’s greatest specialist insurers.
Sky Information has learnt that Athora, which is minority-owned by Apollo, the US-based various investments big, is days away from putting a deal to take management of PIC.
Metropolis sources mentioned the deal, price slightly below £6bn, could possibly be introduced as quickly as this week.
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It might signify a landmark transaction within the pension danger switch market, the place insurers equivalent to PIC, Authorized & Common and Rothesay tackle corporations’ outlined profit pension schemes and the belongings behind them.
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 embrace 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.
Reinet, which owns 49.5% of PIC, issued a press release late final week confirming it was in talks to promote its stake however with out naming the potential acquirer.
Apollo beforehand checked out a proposal for PIC in 2023, with rival bidders together with Carlyle and KKR additionally rising.
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The marketplace for bulk annuities has exploded in recent times as corporations search to dump a wide range of pension-related monetary dangers.
PIC lately introduced the retirement of its long-serving chief government, Tracy Blackwell, and has but to call her successor.
Apollo declined to remark, whereas PIC has been contacted for remark.
