Acquisition: Athora Holdings Acquires PICG for a whopping £5.7 billion
The UK savings and retirement market is set for significant change following the announcement of Athora Holding Ltd's acquisition of Pension Insurance Corporation Group Limited (PICG). The deal, valued at approximately £5.7 billion, will create one of Europe's largest insured savings and retirement services businesses, with over €130 billion in assets under management and administration.
PIC, already one of the UK's top three providers in pension risk transfer, will benefit from Athora's backing, enabling it to serve a larger share of the UK defined benefit pension schemes market and support more pensioners and savers. The acquisition is expected to close in early 2026, subject to regulatory approvals from the PRA.
Upon completion, PIC will become Athora's UK insurance business, operating under the PIC and penguin brands. This move will enhance PIC's capacity for pension risk transfer solutions, allowing it to offer more options to defined benefit pension scheme trustees.
The acquisition will also enable PIC to invest more in sectors critical to the UK economy, such as housing and infrastructure. With Athora's support, PIC plans to bolster economic growth alongside pension security.
Tracy Blackwell, CEO of PIC, believes the acquisition will allow 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. Mike Wells, Athora's Group Chief Executive Officer, commented that the acquisition will enhance access to long-term growth capital and asset origination capabilities for PIC.
The deal positions Athora as a leader in the UK pensions market while complementing its existing business in other key European countries. This consolidation under a strategic single owner could potentially improve strategic focus and operational efficiency for PIC.
The acquisition will also increase Athora's Assets under Management and Administration (AuMA) by approximately 78%, representing €135 billion. This is Athora's third acquisition in Europe, following Generali Belgium and German Delta Lloyd Deutschland.
The acquisition of PIC highlights the importance and maturity of the UK pension risk transfer market, which PIC helped pioneer and continues to lead. The acquisition and potential for growth represent the strongest possible recognition of the value and importance of this sector, which is vital to the wellbeing of millions of UK pensioners and the allocation of tens of billions of pounds of investment into the UK's economy.
In conclusion, this acquisition is expected to bolster the robustness, innovation, and scale of the UK’s pensions market, benefitting millions of savers and retirees and supporting the broader economy through increased investment flows.
- The acquisition of Pension Insurance Corporation (PIC) by Athora Holding Ltd is anticipated to enhance PIC's capacity for pension risk transfer solutions, thereby offering more options to defined benefit pension scheme trustees, potentially improving wellbeing for numerous UK pensioners and savers.
- As a result of the acquisition, Athora's Assets under Management and Administration (AuMA) will increase by approximately 78%, with €135 billion under management, positioning Athora as a significant player in the insurtech and reinsurance sector, and driving expansion into key sectors of the UK economy, such as housing and infrastructure.
- The strategic consolidation of PIC under a single owner, Athora, could potentially improve strategic focus and operational efficiency for PIC, contributing to the overall growth and stability of the UK savings and retirement market, and the broader business finance sector.
