APG Asset Management intends to sell its defined contribution administration business Inadmin to low-cost administrator RiskCo in a strategic move, the manager of the €405 billion ($498 billion) ABP, Herleen, Netherlands, said Thursday.
Inadmin provides retirement, investment and insurance administration to DC plans of corporations, money managers and insurers and has €2 billion in assets under management and administration.
The transaction is expected to close in May, subject to regulatory approval. The value of the deal has not been disclosed, an APG spokesman said. "We are selling it for strategic reasons. We believe RiskCo is a better owner because (it's) highly specialized in IT," the spokesman said.
"This is good for the clients and personnel of Inadmin. APG will continue to serve their larger pension fund clients with investment and administrative and customer service solutions," Wim Henk Steenpoorte, chief operating officer and member of the board of APG, said in a news release.
Since Jan. 4, Inadmin has partnered with Aon Hewitt, assuming responsibility for administration and communication services for the Dutch DC clients of Aon.