Private equity firm Cinven is set to finalise the sale of Germany’s largest life insurance administrator, Viridium, in a €3.5bn ($3.8bn) transaction with an Allianz-led consortium, according to a report by Reuters.
The report cites unnamed industry sources as revealing that the deal is expected to close next week.
Cinven, which has been the majority owner of Viridium since its initial investment in 2013, has played a pivotal role in transforming the business into a key player in the German life insurance sector. The consortium acquiring Viridium includes Allianz, US asset manager BlackRock, Japanese life insurer T&D, and Italian insurer Generali – which already holds a 10% stake in the company.
Hannover Re, which co-founded Viridium alongside Cinven, is also expected to divest its stake either partially or in full, according to industry publication Versicherungsmonitor.
The transaction marks a significant exit for Cinven, which has been actively investing in the insurance and financial services sectors. The firm’s strategy in acquiring and consolidating closed-book life insurance portfolios has made Viridium a major player in this space.
Hannover Re’s Chief Financial Officer, Clemens Jungsthoefel, confirmed on Thursday that the sale would have no material impact on the reinsurer’s earnings.
Both Allianz and Cinven declined to comment on the transaction. BlackRock and T&D were not immediately available for statements.
