Cinven’s Viridium Group, a German life insurance consolidator, is drawing early interest from insurance and investment companies, reported Bloomberg, citing sources.
A potential deal could value the company at more than €3bn ($3.27bn).
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Apollo Global Management affiliate Athora, Blackstone-backed Resolution Life and investment company Sixth Street are among the early suitors for Viridium Group, according to sources.
Cinven has hired Goldman Sachs Group and Fenchurch Advisory to advise on the deal and has held initial talks with the suitors.
The sale process for Viridium, which is expected to start later this year, may also attract US life insurance consolidators seeking expansion in Europe, the sources said.
Viridium, based near Frankfurt, has 3.4 million policies and €67bn in assets under management, with a 2023 net income of €325m.
Founded in 2014 by Cinven and Hannover Re as Heidelberger Leben Group, it was later renamed Viridium.
It also counts Italian insurance major Generali as a shareholder.
The company is recognised for managing legacy life insurance portfolios and associated investments.
According to sources, Generali and Hannover Re will likely retain their stake in Viridium.
While deliberations are ongoing and no decision is final, the interest in Viridium reflects the private equity sector’s focus on legacy policy management companies.
Athora, Blackstone, Cinven, Fenchurch, Generali, Goldman Sachs and Sixth Street representatives declined to comment on the news, the news agency said, adding that spokespersons from Hannover and Resolution Life did not respond right away to requests for comments.
Viridium’s CEO Tilo Dresig has indicated that the company is exploring strategic options, seeking buyers with a long-term investment perspective.
Last year, Cinven-backed Eurovita was placed under administration due to solvency issues amid market volatility.
Additionally, a planned transfer of life insurance policies in Germany between Athora and Axa was terminated in May 2024.
