Apollo-supported Athora inching towards a £6 billion merger with Pension Insurance Corporation
In a potential game-changer for the UK's pension risk transfer market, Athora, a European retirement services group backed by the US-based alternative investments giant Apollo Global Management, is reportedly close to sealing a near-£6 billion deal to acquire Pension Insurance Corporation (PIC), one of the UK's leading pension risk transfer specialists.
The acquisition, valued at approximately £5.9 billion, could be announced as early as this week, according to the latest reports dated early July 2025. If successful, the transaction would mark a significant event in the rapidly growing pension risk transfer market, where insurers like PIC take on companies' defined benefit pension schemes and their assets.
Strategically, the acquisition would give Athora immediate scale and diversify its exposure to European pension liabilities, a market projected to grow as corporations increasingly offload pension risks. PIC manages around £50.9 billion in pension obligations and holds a significant position in the UK bulk annuity market with a 17% market share.
Apollo Global Management, with $751 billion under management, views pension risk transfer as a long-duration, low-volatility asset class that fits well with its investment approach. The integration of a leading pension insurer like PIC into Apollo's broader European platform would signal an active operational role beyond mere ownership.
PIC's shareholders include CVC Capital Partners, BlackRock-owned HPS, Abu Dhabi Investment Authority, and Reinet Investments, which holds a 49.5% stake. Reinet has confirmed it is in advanced talks with Athora regarding the sale of its stake, reflecting the ongoing serious negotiations.
Notably, PIC recently announced the retirement of its long-serving CEO, Tracy Blackwell, and a successor has yet to be named. This change in leadership could coincide with the change in ownership.
PIC has notable clients such as RSA, British American Tobacco, Chemring, and Qantas, highlighting its market importance. The transaction would be a landmark in the pension risk transfer market, further solidifying Athora's position as a major player in the UK and European pension insurance landscape.
The acquisition of Pension Insurance Corporation (PIC) by Athora, valued at approximately £5.9 billion, would mark a significant event in the pension risk transfer market, as it offers immediate scale and diversifies Athora's exposure to European pension liabilities. This transaction, if successful, would signal an active operational role for Athora in the long-duration, low-volatility asset class of pension risk transfer.
