Johann Rupert’s Reinet Investments in Advanced Talks to Sell Stake in PIC for £5.7 Billion (~R135 Billion)

Latest update: July 3, 2025.

Overview of the Proposed Transaction

Reinet Investments, chaired by South African billionaire Johann Rupert, has officially confirmed it is in advanced talks to sell its indirect 49.5% stake in the UK’s Pension Insurance Corporation Group (PIC) to Athora Holding Ltd. The proposed transaction carries an implied valuation of approximately £5.7 billion (~R136 billion).

PIC is a UK insurer specialising in pension risk transfer, managing around £50 billion in assets on behalf of nearly 400,000 policyholders.

Stakeholders & Shareholding Structure

Reinet Investments

This Luxembourg-based investment vehicle first acquired its stake in PIC in 2012, initially purchasing 43% for around £400 million. Over time, it grew to 49.5%, making it the single largest stakeholder.

Other Shareholders

• Abu Dhabi Investment Authority: ~18.4%
• CVC Capital Partners: ~17.4%
• HPS Investment Partners: ~10.2%
• Employees and other minority shareholders: ~4%

Post-sale, it is expected PIC will remain under a single strategic owner for the first time in its 20-year history, continuing to operate under its well-known brand.

Athora & Apollo’s Push into the UK Pension Market

Athora Holding Ltd, backed by Apollo Global Management, is swiftly emerging as a European force in the defined benefit pension space. Athora operates across Germany, Italy, Belgium, the Netherlands—and soon the UK with PIC under its wing.

Athora’s acquisition of PIC, handling over £50 billion in assets, is its largest deal to date and significantly expands its footprint via a client base of 400,000 policyholders.

Apollo’s strategic interest echoes a broader trend with major US asset managers—such as KKR, Carlyle, and Brookfield—gaining exposure to the UK’s pension risk transfer market{index=7}

Financial Performance & Dividends

PIC’s Strong Track Record

PIC posted a record £8.1 billion of new business premiums in 2024 and has historically maintained a 99% client satisfaction rate. It has also distributed more than £16 billion in pensions.

As of end-2024, PIC’s Solvency II capital ratio was a robust 237% (up from 211%), and it issued £2b of Tier 2 subordinated notes for capital optimisation.

Reinet’s Dividend Benefit

Reinet has directly received substantial payouts from PIC in the last year, amounting to around €212 million (£178 million) in final dividend, plus €150 million (£125 million) from interim and special dividends. :contentReference[oaicite:10]{index=10}

PIC represents approximately 53–55% of Reinet’s net asset value (~€3.7 billion stake), making it the most significant contributor to its performance. :contentReference[oaicite:11]{index=11}

Valuation & Market Context

The agreed valuation of £5.7 billion may include implied discounts for its illiquid status and regulatory uncertainty from UK’s Prudential Regulation Authority. Benchmark valuations for comparable peers like Rothesay Life suggest a potential up to 1.5× book. :contentReference[oaicite:12]{index=12}

Sector trends indicate increasing demand for pension risk transfer as UK corporate pension deficits remain substantial—one estimate puts the deficit at over £400 billion. :contentReference[oaicite:13]{index=13}

Reinet’s Motives & Investor Reaction

Reinet’s board cited the opportunity to realise gains and possibly reallocate capital into growth areas. Net asset value has grown ~9% annually since 2009; the deal could accelerate portfolio diversification. :contentReference[oaicite:14]{index=14}

Following the announcement, Reinet’s share price saw an initial dip (~2–5%), before rallying ~15% since late June, boosting market cap by ~R113 billion. :contentReference[oaicite:15]{index=15}

Key Risks & Regulatory Considerations

• Transaction Uncertainty: There’s no guarantee the deal will close or deliver on current terms. :contentReference[oaicite:16]{index=16}
• Regulatory Headwinds: Changes in capital rules for pension risk transfers could impact margins. :contentReference[oaicite:17]{index=17}
• Leadership Transition: While PIC’s CEO left in 2024, the integration of leadership remains a critical watchpoint. :contentReference[oaicite:18]{index=18}

Next Steps

The deal is pending due diligence and approval from UK and EU regulators. Closing is expected in early 2026, though no timetable is confirmed. :contentReference[oaicite:19]{index=19}

Reinet has pledged to keep shareholders updated as negotiations progress and material information becomes available. :contentReference[oaicite:20]{index=20}

Further Reading & Resources

• Reinet Investments Official Website
• Pension Insurance Corporation
• Athora Holding Ltd
• Apollo Global Management

Published by businesstech.co.za· July 3, 2025

FOR MORE NEWS VISIT OUR WEBSITE