European private equity firm, Cinven has completed its acquisition of Guardian Financial Services from Aegon for £275m.
Cinven originally reached agreement to acquire the UK closed book of life and pensions business from Aegon in August 2011.
The transaction was originated by Cinven’s financial services team as part of its analysis of the European life assurance market.
Cinven claimed the investment provides a consolidation platform for the equity firm in the European closed life assurance market driven by factors including the fragmented nature of the market; commercial pressures on smaller operators; banking institutions looking to exit insurance assets and overseas insurers seeking to recycle capital.
It stated: “This strategy would create benefits for shareholders and policy holders through greater efficiencies and de-risking funds.”
Cinven’s acquisition of Guardian follows the recent US$300m (£193m) equity investment in Avolon, the Cinven-backed international aircraft leasing group, from the government of Singapore Investment Corporation.