A consortium comprising Allianz, BlackRock and T&D Holdings has agreed to purchase Viridium Group from Cinven in a deal valued at around €3.5bn ($3.8bn).
The deal, which is set for completion in the second half of 2025, will see T&D Holdings acquiring the largest ownership share.
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Completion of the deal is contingent on the fulfilment of standard closing conditions including regulatory clearances.
General Financial Holdings and Hannover Re will continue their investments in Viridium.
Viridium will maintain operations as an independent platform under its current management team.
The consortium is structured to allow for the inclusion of additional long-term financial investors, the joint release stated.
This move is expected to support the growth of the European closed-life market and offer insurers more options for managing closed-life books, the release added.
The consortium’s asset management expertise, covering various asset classes, is expected to strengthen Viridium’s ability to deliver returns to policyholders.
Cinven co-managing partner DACH team head Bruno Schick said: “Cinven is proud to have built Viridium from the ground up and developed it into Germany’s leading life insurance consolidation platform. This sale to a consortium of top-tier global insurers and asset managers, with the continued involvement of Hannover Re and Generali, provides an excellent foundation for continued growth and highlights the strategic value of Viridium. It is a clear reflection of Cinven’s unparalleled leadership in the Financial Services Sector and the DACH region.”
Viridium consists of four life businesses – Proxalto Lebensversicherung, Entis Lebensversicherung, Heidelberger Lebensversicherung and Skandia Lebensversicherung.
As of the end of 2023, Viridium reported €67bn in assets under management, serving 3.4 million policyholders and employing around 900 people.
According to its website, Viridium is one of the five largest German life insurance companies, with a market share of around 5%.
In 2023, Cinven was considering the sale of Viridium.
