Athora, an insurance company backed by Apollo Global Management, is in talks to acquire Pension Insurance Corporation (PIC), reported Sky News.  

The potential transaction is estimated by industry experts to be valued at between £4bn and £5bn, the report said.  

PIC’s business model involves the acquisition of defined benefit pension schemes from various corporations, along with the management of the associated assets.  

The insurer has previously completed transactions with companies including RSA and British American Tobacco and has agreements with Chemring and Qantas. 

The PIC shareholders include CVC Capital Partners, HPS Investment Partners (a BlackRock subsidiary), a subsidiary of the Abu Dhabi Investment Authority, and Reinet Investments, which was formed during the reorganisation of Richemont, a luxury goods group. 

Details regarding the potential acquisition, such as the final price and the structure of the deal, are still uncertain.  

Apollo’s interest in PIC is not new, as it had already considered a bid for the company earlier in 2023, a process that attracted attention from other investment firms including Carlyle and KKR. 

PIC is currently undergoing a leadership transition following the announcement that Tracy Blackwell, its long-serving chief executive, is to retire. The process of appointing a new CEO is ongoing. 

Representatives for Apollo and PIC have not provided comment on the reported acquisition talks. 

Last year, Athora and AXA cancelled the sale of a closed life and pensions portfolio.  

The deal, initially announced in July 2022 and worth €660m ($883.3m), involved Athora Deutschland’s intended purchase of the DBV-Winterthur Life portfolio from AXA Germany.