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Cinven continues insurance interest with €300m Heidelberger Leben deal

21 Aug 2013

contract-5_sqCinven has continued its interest in the insurance sector by picking up 80 per cent of Germany’s Heidelberger Leben from Lloyds Banking Group in a deal which values the business at €300m.

Strategic player Hannover Re, the world’s third-largest reinsurer, has bought the remaining 20 per cent stake in Heidelberger which has a portfolio of around 600,000 policies.

The company had €5.2bn of assets at the start of 2013.

Cinven’s purchase makes Heidelberger the sixth insurance-related company in its private equity portfolio following previous investments in businesses including Holland Re, broker Holmwoods and motor insurance specialist Sabre.

The firm bought UK-based Guardian Life Insurance from Dutch pensions giant Aegon for £275m at the end of 2011, and has grown the business from £8bn to £13bn of assets.

Cinven has every right to be confident in the sector following June’s IPO of portfolio company Partnership Assurance Group, which netted it a seven-times return on investment.

It bought into the life insurer for £158m in 2008, and continues to hold a 52 per cent stake following the public listing valued at £800m at the IPO price.

Cinven partner Caspar Berendsen said, “With Guardian Financial Services, our Financial Services team has created a fast growing life insurance consolidation platform in the UK which provides significant benefits to all stakeholders.

“We are looking forward to supporting the Heidelberger Leben management team with our expertise in building a similar platform in the German market.

“Being the first German consolidation platform for life insurance portfolios, Heidelberger Leben will benefit from the continuing changes in the market and will make a key contribution to the strategic options for the German life insurance industry.”

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