Reinet Investments, one of Luxembourg’s largest investment firms but relatively unknown locally, has agreed to sell its entire stake in the UK’s Pension Insurance Corporation Group (PIC) to Athora Holding, a European insurer backed by Apollo Global Management.

In a statement published on Thursday night, Reinet said it would dispose of its 49.5% shareholding in PIC as part of a wider transaction that will see all the company’s shareholder, including the Abu Dhabi Investment Authority, CVC Capital Partners, HPS Investment Partners and PICG employees, exit together.

Reinet holds an indirect 49.5% stake in PIC, meaning it could receive around €3.3 billion if the deal proceeds at the proposed price. PIC has long been Reinet’s largest single investment and a steady source of income for the company.

PICG’s fully diluted share capital is valued at around £5.7 billion (€6.6 billion) at the time of the agreement and this is expected to increase to about £5.9 billion (€6.85 billion) by the closing of the deal, considering expected dividends, Reinet said.

Reinet said the transaction is still subject to regulatory approvals and is expected to close in early 2026.

However, the valuation is lower than the figure Reinet reported in its latest annual results. Its 2024 annual report valued the PIC stake at about €3.63 billion as of 31 March. Analysts estimate the current deal terms imply a discount of around 20% compared to that book value.

Reinet’s shares, which trade in Johannesburg as well as Luxembourg and Amsterdam, fell as much as 5.4% after the announcement and were down about 4% on Thursday afternoon. The stock had rallied about 25% since speculation about a possible deal first surfaced in mid-June.

PIC specialises in so-called bulk annuity transactions, where an insurer takes over corporate pension schemes and manages them over the long term. This market has grown rapidly in the UK as companies look to reduce long-term pension risks. 

The buyer, Athora Holding, is a Bermuda-based insurer that focuses on life and pension run-off across Europe. Athora is backed by US private equity group Apollo Global Management, which has expanded aggressively into the European insurance market over the past decade through similar deals.

PIC’s other major shareholders include Luxinva, an arm of Abu Dhabi’s sovereign wealth fund, and private equity firm CVC Capital Partners. A deal would represent a significant exit for all three investors.

Reinet, which was spun out of South African billionaire Johann Rupert’s Richemont empire in 2008, uses Luxembourg as a discreet base to manage global holdings. The company traces its roots back to Rupert’s original tobacco fortune, which later evolved into Richemont, the owner of Cartier, Montblanc and other high-end brands.

Despite its multi-billion-euro value and listings on three major stock exchanges, Reinet remains low-profile in Luxembourg. 

(This article was updated at 10:15 on 4 July 2025 to include the latest Reinet statement confirming that the deal had been agreed)