Dutch firm Achmea is entering the pension buyout market through a strategic partnership with insurance firm Lifetri and private equity manager Sixth Street.
Achmea and Lifetri are merging their pension and life insurance portfolios into a newly created entity, Achmea Pension & Life Insurance, with the aim of becoming active in the pension risk transfer market in the Netherlands. The firms are targeting a 20% market share, a news release said. Lifetri and Sixth Street already have some experience in the pension buyout market, an Achmea spokesman confirmed, but Achmea does not. However, it “has been making plans in order to become active in this market,” he added.
Sixth Street — the main shareholder of Lifetri — will acquire 20% of the shares of the new business. Achmea will hold the remaining 80% of the business. Lifetri employees will transfer to Achmea.
The Dutch buyout market is expected to reach between €20 billion ($21.1 billion) and €30 billion over the next few years, the news release said. Reforms in the €1.7 trillion Dutch pension fund market are expected to drive further consolidation and increase demand to insure liabilities.
"This is a great outcome of the strategic exploration that we have carried out over the past year,” said Bianca Tetteroo, chair of Achmea’s executive board, in the release.
“The joint venture has all the expertise necessary to successfully provide solutions to the Dutch pension and life market, where we continue to see significant opportunities for growth,” said Michael Muscolino, co-founder and partner at Sixth Street, in the same release.
Achmea Investment Management, an impact investing specialist and subsidiary of Achmea, “will shape the ambition of the joint venture to align financial returns with social impact and climate goals, embedding these values in its policies and operations,” the release added.
The deal is subject to regulatory and other approvals and is expected to close in the second half of 2025. Management appointments will be made later in the process, the spokesman confirmed, but Arthur van der Wal, director-pension and life at Achmea, will be responsible for coordinating the necessary actions to start the joint venture once the deal completes.
