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Abu Dhabi's ADIA to buy stake in pensions giant

Abu Dhabi Investment Authority reaches agreement to acquire a stake of up to 21.4% in Pension Insurance Corporation Group
By Sam Bridge
Tue 19 Jun 2018 01:42 PM

Abu Dhabi Investment Authority (ADIA) said on Tuesday that its private equity department has reached an agreement to acquire a stake of up to 21.4 percent in Pension Insurance Corporation Group.

PIC Group has become one of the world’s biggest investors in bulk annuities, which cover the pension obligations of defined benefit, or final salary, pension schemes for UK staff.

PIC has in excess of £25 billion in financial assets, supporting the benefits of more than 150,000 individuals, ADIA said in a statement.

The acquisition is the latest principal investment by ADIA’s Private Equities Department (PED), across its target sectors of financial services, healthcare, industrials, technology, and consumer products.

Hamad Shahwan Aldhaheri, executive director of PED, said: "This investment is a further demonstration of our ongoing  strategy to seek out principal investments in market-leading  businesses with strong management teams.

"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.”

The stake purchase is from funds advised by private equity firm JC Flowers & Co.

Tracy Blackwell, CEO at PIC, said: "We are delighted to welcome ADIA to our small group of committed shareholders with financial services expertise and long-term investment horizons."

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Last Updated: Tue 19 Jun 2018 01:48 PM GST

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