Insurance consolidators, investment companies vie for Viridium: Cinven’s €3bn sale attracts early interest

Cinven’s Viridium Group, a German Life insurance consolidator, is currently attracting early interest from insurance and investment companies, according to sources cited by Bloomberg. The potential deal could value the company at more than €3bn ($3.27bn).

Among the early suitors for Viridium Group are Apollo Global Management affiliate Athora, Blackstone-backed Resolution Life, and investment company Sixth Street. Cinven has enlisted the help of Goldman Sachs Group and Fenchurch Advisory to advise on the deal and has already initiated talks with the interested parties.

Viridium, based near Frankfurt, manages 3.4 million policies and €67bn in assets under management, with a net income of €325m in 2023. The sale process for Viridium is expected to commence later this year and may also attract US Life insurance consolidators looking to expand their presence in Europe.

Founded in 2014 as Heidelberger Leben Group by Cinven and Hannover Re, the company was later rebranded as Viridium. It also has Italian insurance major Generali as a shareholder. Viridium is known for its expertise in managing legacy Life insurance portfolios and associated investments.

While Generali and Hannover Re are likely to retain their stake in Viridium, the private equity sector’s interest in legacy policy management companies is evident through the attention Viridium is receiving. Viridium’s CEO Tilo Dresig has expressed the company’s interest in exploring strategic options and finding buyers with a long-term investment perspective.

Representatives from Athora, Blackstone, Cinven, Fenchurch, Generali, Goldman Sachs, and Sixth Street declined to comment on the news, while spokespersons from Hannover and Resolution Life did not respond immediately to requests for comments.

In related news, Cinven-backed Eurovita faced solvency issues last year and was placed under administration due to market volatility. Additionally, a planned transfer of Life insurance policies in Germany between Athora and AXA was terminated in May 2024.

The interest in Viridium Group highlights the ongoing trend in the private equity sector towards legacy policy management companies. As discussions continue and no final decision has been made, the future of Viridium remains uncertain, but the company’s strong reputation and financial performance make it an attractive prospect for potential buyers.