Brookfield Wealth Solutions to Buy UK Insurer Just Group

Canadian investment firm Brookfield Wealth Solutions (BWS), which was spun off from Brookfield Corporation in 2021, has announced on Thursday that it will acquire the UK’s insurer Just Group LLC for $3.18 billion.

The acquisition comes after Brookfield Wealth Solutions, announced plans to enter the UK pension risk transfer market.

London-based Just Group is a specialist in defined benefit de-risking, individual retirement income and care markets, serving 700,000 customers and responsible for around £27billion of savings.

Just Group shareholders will receive 220 pence per share, equivalent to a 75% premium to its closing price at the end of July.

BWS Chief Executive Sachin Shah said that the deal will accelerate their growth ambitions for the UK, which he described as a core region for his company given its status as one of the world’s preeminent pension markets combined with highly attractive investment opportunities.

BWS said that it intends for Just Group and its existing UK insurance company, Blumont, to operate as a single consolidated insurance group under Just’s brand and under the leadership of Just’s existing senior management, with London as the headquarters of the combined group.

According to media reports, the London-based Just Group is a specialist in defined benefit de-risking, individual retirement income and care markets, serving 700,000 customers and responsible for around $35.74 billion of savings.

BWS said that Just’s differentiation through its innovative Beacon platform will be further complemented by expanded de-risking capacity, enabling the combined UK Group to serve an expanded range of small and large schemes with expertise from Just and BWS as well as the support of BWS’s balance sheet.

The firm said that the acquisition also positions Just to maintain its offering in individual annuities while enhancing its ability to capitalise on evolving retirement trends – including the growing opportunities in defined contribution pensions.

BWS said the combined UK group, with the support of BWS’s balance sheet and expertise in individual annuities and wealth solutions, would be able to reinvest capital strategically in these key growth areas.

Benefits Combined Business

BWS also said the combined business would benefit from the investment expertise and asset origination capabilities of Brookfield Asset Management – a manager which runs over $1 trillion of investments in infrastructure, renewables, real estate, private equity and credit worldwide.

This includes over $79.4 billion of investment in the UK, including portfolio companies such as SGN, OnPath Energy, Canary Wharf Group, Center Parcs, PD Ports and Homeserve. The acquisition of Just Group follows the launch of BWS’s business in the UK in March and the commencement of operations for Blumont Annuity later that month.

Just Group has secured several bulk annuity transactions in the last year including a £4m buy-in with the Apostolic Church Staff Pension Scheme, a £150m buy-in deal with the MGN Pension Scheme, which secured the benefits of 1,300 in-payment members, and a £120m deal with the South East Water scheme.