The transaction, expected to close next week, marks a significant exit for Cinven after more than a decade of ownership.
According to a report by Reuters, the acquiring consortium comprises Allianz, BlackRock, Japanese life insurer T&D, and Generali, which already holds a 10% stake in Viridium. Hannover Re, a co-founder of Viridium alongside Cinven, is also expected to divest its stake, either partially or fully.
Cinven, which acquired a majority stake in Viridium in 2013, played a pivotal role in transforming the company into a key player in the German life insurance market, specializing in the consolidation of closed-book life insurance portfolios. This strategic focus has positioned Viridium as a major force in the sector.
The sale reinforces Cinven’s broader strategy of investing in insurance and financial services. Reuters reports that the deal is expected to close next week.
Hannover Re’s CFO, Clemens Jungsthoefel, confirmed that the transaction would have no material impact on the reinsurer’s earnings. Allianz and Cinven declined to comment, while BlackRock and T&D were not immediately available for statements.
The impending transaction underscores the growing interest of major institutional investors in Europe’s life insurance consolidation market. The deal highlights the value placed on established life insurance administrators with significant portfolios, as large players seek to expand their market presence.
