Cinven in €220m Skandia Austria and Skandia Germany purchase

Following the acquisition, the target companies will merge with Hannover Re to form Heidelberger Leben Group.

In August 2013, Cinven and Hannover Re combined to acquire Heidelberger Leben, with the GP purchasing an 80% stake for €300m and Hannover Re purchasing the remaining 20%. Cinven's capital for the initial deal was drawn from its fifth fund.

The new Heidelberger Leben Group will have around €10bn of assets under management, with the merger intended to reduce Skandia's administrative costs and improve its customer services. The deal is intended as a catalyst for a buy-and-build strategy.

The transaction is expected to complete by the end of March 2014, once it has been approved by German and Austrian financial authorities.

Company
Skandia Austria and Skandia Germany are life insurance providers based in Vienna and Berlin respectively. They employ a combined total of 280 people and manage more than 400,000 policies.

The insurers recorded combined post-tax adjusted operating profits of €27m in 2013 and had a net asset value of £259m at year-end.

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