Private equity firm Cinven will acquire a majority share of 77%, worth up to 200m euro, in specialist retirement solutions provider Partnership Assurance, subject to regulatory approvals.
In addition to buying out Partnership's existing shareholders, Phoenix Equity partners, Cinven intends to inject further capital into the business to strengthen the company's balance sheet.
It has also given a commitment to invest further substantial amounts if required to support future business developments.
The markets in which Partnership operates, including impaired and enhanced annuities, long-term care plans and life cover are expected to show significant future growth. This is a result of a combination of the rapid migration to defined contribution (DC) schemes and demographic trends, as well as regulatory developments driving fairer pricing of annuities in the UK.
Ian Owen, executive chairman of Partnership, says: “Cinven has the investment firepower to enable us to now go much further, much faster.
“They share our vision for the business in building on our market leading mortality data, expertise and reputation to become the undisputed leader in underwritten annuities, whether ‘enhanced' or ‘impaired', whilst continuing to build on our pre-eminent position in the care market.”IFAonline
F&C IT's 150th anniversary
First meeting for Powell
Red tape and tech driving consolidation
2019 Survey opens in June