The Abu Dhabi Investment Authority (ADIA) has agreed to acquire up to 21.4% stake in Pension Insurance Corporation Group from J.C. Flowers.
Financial terms of the stake acquisition were not disclosed. Pension Insurance Corporation Group is the parent company of Pension Insurance Corporation (PIC), a specialist insurer and bulk annuities provider in UK.
PIC is claimed to have more than £25bn in financial assets and supports the benefits of over150,000 individuals.
Established in 1976, ADIA is an investment institution that invests on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.
It is the latest acquisition by ADIA’s Private Equities Department (PED), targeting investments across sectors such as financial services, healthcare, industrials, technology, and consumer products.
PIC CEO Tracy Blackwell said: “We are delighted to welcome ADIA to our small group of committed shareholders with financial services expertise and long-term investment horizons. We are confident that, together, they will continue to build on the valuable support provided by J.C. Flowers over the past 12 years, and ensure that PIC is ideally placed to meet the increased demand from pension fund trustees.”
ADIA Private Equities Department executive director Hamad Shahwan Aldhaheri stated that the investment exemplifies the company’s ongoing strategy to seek out principal investments in market leading businesses with strong management teams.
Aldhaheri said: “PIC has proven its ability to respond to the growing trend for UK companies to de-risk their defined benefit pension obligations and, as such, has strengthened its position as one of the industry’s leading pension insurance providers.”
J.C. Flowers Europe in charge managing director Tim Hanford said: “As a founding investor in PIC, we have supported the company on its path to becoming a leader in the growing UK bulk annuity sector.
“We are delighted to see them starting a new partnership with ADIA and are very confident that the company will continue on its successful journey with this new support.”