A savings and retirement services group backed by Apollo Global Management is closing in on a near-£6bn takeover of Pension Insurance Corporation (PIC), one of the City’s biggest specialist insurers.
Sky News has learnt that Athora, which is minority-owned by Apollo, the US-based alternative investments giant, is days away from striking a deal to take control of PIC.
City sources said the deal, worth just under £6bn, could be announced as soon as this week.
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It would represent a landmark transaction in the pension risk transfer market, where insurers such as PIC, Legal & General and Rothesay take on companies’ defined benefit pension schemes and the assets behind them.
RSA, the insurer, and British American Tobacco are among the corporate names with which PIC has transacted.
It has also signed agreements with Chemring and Qantas.
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PIC’s shareholders include CVC Capital Partners, BlackRock-owned HPS, a subsidiary of the Abu Dhabi Investment Authority and Reinet, a vehicle created from the restructuring of luxury goods group Richemont.
Reinet, which owns 49.5% of PIC, issued a statement late last week confirming it was in talks to sell its stake but without naming the potential acquirer.
Apollo previously looked at an offer for PIC in 2023, with rival bidders including Carlyle and KKR also emerging.
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The market for bulk annuities has exploded in recent years as companies seek to offload a variety of pension-related financial risks.
PIC recently announced the retirement of its long-serving chief executive, Tracy Blackwell, and has yet to name her successor.
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Apollo declined to comment, while PIC has been contacted for comment.
