Cinven in talks to buy Aegon unit
Cinven has been granted a few weeks by Aegon to agree a deal for the life assurance business that could be worth £250m to £300m, the source said.
The acquisition could see Cinven compete against the likes of Swiss Re, Phoenix Life and Chesnara for other closed life portfolios in the future.
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Hide AdMany small life insurers have closed their doors to new customers because they do not have enough capital to underpin continued growth, focusing instead on profitably managing their ‘back book’ of existing policies.
This has opened up opportunities for consolidators who make money by buying up blocks of closed life funds and squeezing out cost savings. Insurance entrepreneur Clive Cowdery made billions for investors when he sold Resolution, the closed life fund consolidator he founded, to rival Pearl in 2007.