Cinven agreed to sell its majority stake in German life insurance group Viridium to a consortium led by Allianz, BlackRock, and Japan’s T&D Holdings in a €3.5bn transaction. 

The deal marks a significant exit for the British buyout firm following heightened regulatory scrutiny of private equity ownership in the insurance sector.

The transaction values Viridium at €3.5bn, including debt. T&D Holdings will become the largest shareholder, while Allianz will acquire a 25% stake. Hannover Re will reduce its holding from 20% to 10%, while Generali Financial Holdings will remain invested.

The sale follows Viridium’s abandoned attempt to acquire a $20bn life insurance portfolio from Zurich last year. Regulatory concerns over private equity’s role in life insurance had contributed to the failed deal, with Germany’s BaFin closely monitoring the sector. This scrutiny intensified after Cinven-backed Eurovita was placed into special administration in Italy due to capital shortfalls.

Cinven first acquired Viridium, then known as Heidelberger Leben, from Lloyds Banking Group for €300m over a decade ago. Since then, the insurer has expanded through acquisitions, including Skandia and Entis, growing its assets under management from €5bn to €67bn and its policyholder base from 600,000 to 3.4 million.

Cinven’s head of financial services, Bruno Schick, said the sale would provide Viridium with a strong foundation for future expansion, while CEO Tilo Dresig highlighted growth opportunities in Germany and continental Europe, particularly France.

The deal, pending regulatory and merger-control approvals, is expected to close in the second half of 2025.