Athora's German business has struggled to grow. A sale now appears likely.
Frankfurter Leben, backed by Chinese giant Fosun, is ready to make an offer. Another bidder, IKAV, also wants in.
Frankfurter Leben is a life insurance consolidator. That means it buys and manages portfolios of old life insurance policies. The company is controlled by Fosun International, a Chinese conglomerate.
By contrast, Athora's German unit oversees €3.5 billion in managed and administered assets.
Apollo is a major U.S. asset manager. Officials at Athora, Apollo, and Frankfurter Leben all declined to comment when contacted.
The German division has failed to see growth.
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But the entire company is much bigger. After finalizing the acquisition of Britain's Pension Insurance Corp., Athora's total assets under management and administration reached €139 billion. In March, Athora declared it would move its corporate base from Bermuda to the UK.
The German unit is being sold because it has not grown. Athora has been looking at options, including a potential sale, Bloomberg News reported in January. Now two bidders are racing to submit final offers.
Following the 2023 failure of Italy's Eurovita, which was owned by UK buyout firm Cinven, European regulators have tightened oversight of life insurance owners and related dealmaking. IKAV, an asset manager that specializes in energy infrastructure investments, has offices in Germany, Luxembourg, and the U.S.
According to its website, IKAV oversees €4.75 billion in assets.
Representatives for IKAV and Fosun did not respond to requests for comment.
European regulators will take a hard look at any deal. The collapse of Eurovita in 2023 shocked the industry and led to tighter scrutiny. It remains uncertain whether a deal will be finalized. Both bidders are expected to submit their final offers very soon.
Life insurance consolidators like Frankfurter Leben have become active buyers of legacy policy blocks across Europe, seeking to generate returns by managing closed books more efficiently. Fosun's backing gives Frankfurter Leben access to significant capital, while Athora itself is a major player in the run-off market. The sale of Athora's German unit would allow the parent company to focus on larger markets like the UK following its recent acquisition. Frankfurter Leben has already completed several acquisitions in Germany, building a portfolio of policies from insurers that exited the market, and its bid for Athora's division fits this established strategy.
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