A group of major insurers and asset managers are to acquire Cinven’s majority stake in German closed-book life consolidator Viridium, in a deal valued at €3.5bn ($3.8bn).
Allianz, BlackRock, T&D Holdings, Hannover Re and Generali Financial Holdings will take ownership of Viridium, which has €67bn ($73bn) of assets under management, services 3.4m policyholders and has 900 employees.
Hannover Re and Generali’s Ocorian Fund Management were existing minority investors in Viridium. The new consortium is structured to enable the addition of other long-term financial investors. The precise share of ownership between the partners was not revealed, but Japan's T&D has the largest share.
The consortium said Viridium will continue to operate as an independent, standalone platform for the management of closed life insurance portfolios, led by the current management team.
"The consortium's leading asset management capabilities across a wide spectrum of asset classes, including private market strategies, will also support Viridium's ability to generate attractive returns for its policyholders while maintaining a sound financial position," the consortium said in a statement.
The future for Viridium’s business model was cast into doubt following the German regulator, BaFin, blocking a consolidation deal between Viridium and Zurich in 2024 over concerns that Viridium’s private equity fund owners would not support the business if it hit trouble. This followed the collapse of Cinven-owned Eurovita in Italy in 2023.
With the backing of major insurers (Allianz, T&D, Hannover Re, Generali) the future of Viridium now looks more secure.
Viridium CEO Tilo Dresig said: "I would like to thank Cinven for its valuable support and partnership throughout its investment. Cinven's entrepreneurial approach, insurance expertise, and our shared vision have been key to Viridium's development as a leading German life insurer."
Cinven acquired life insurer Heidelberger Leben in 2014. Renaming the business Viridium, it went on to acquired books of business from Skandia, Entis and Generali Leben.
The transaction is expected to close in the second half of 2025, subject to regulatory approval.