Athora Holding has reported operating capital generation of €767 million for 2025, up 17% year-on-year, as the European savings and retirement group prepares to complete its acquisition of Pension Insurance Corporation Group (PICG) within days.
It posted an IFRS loss before tax of €382 million for the year ended Dec. 31, 2025, compared with a profit of €54 million in 2024. The loss was primarily attributable to negative market movements from rising interest rates during 2025, which created accounting volatility due to Athora's approach to hedging operating entity solvency.
Despite the accounting loss, underlying operational metrics strengthened across the group's footprint in the Netherlands, Belgium, Italy and Germany. New business volumes increased 13% to €5.2 billion, driven by organic growth of €4.1 billion and the completion of two pension risk transfer transactions in the Netherlands totalling €1.1 billion.
Assets under management and administration remained broadly stable at €75.5 billion, down slightly from €76.0 billion in 2024. The positive contribution from organic new business and Dutch pension risk transfers was largely offset by claims payments and adverse market movements on fixed income securities resulting from rising interest rates.
The interest rate environment created particular challenges for Athora's IFRS reporting. An increase in interest rates has a negative impact on IFRS results due to Athora's approach to hedging operating entity solvency, which creates accounting volatility even as the underlying business performs strongly on a Solvency II basis.
The group's estimated BSCR solvency ratio improved to 195% from 187% in 2024, supported by positive capital generation and management actions, partially offset by increased capital requirements from selective deployment into private assets.
Solvency remained robust across all operating entities, with the Netherlands at 197%, Belgium at 163%, Germany at 172%, Italy at 191% and reinsurance at 223%. Athora Netherlands' solvency ratio reflected €330 million of remittance payments during the year, up 6% from 2024.
Cash remittances from operating entities totalled €330 million, with Athora Netherlands contributing €569 million to group operating capital generation. The positive result and strong solvency position supported the increased dividend upstream.
Earlier this month, Athora received regulatory approval from the Prudential Regulation Authority for its acquisition of PICG, the specialist insurer of UK defined benefit pension schemes. The transaction is expected to close around March 27.
The acquisition will create one of Europe's top-five guaranteed savings and retirement services businesses based on IFRS technical reserves. Including PICG, Athora will comprise about €139 billion of assets under management and administration and support the long-term financial security of approximately 3.1 million policyholders.
The deal comes as the UK bulk purchase annuity market continues to expand. Current indications suggest 2025 closed with around £40 billion in total deal value with a record number of transactions, according to recent analyst commentary. Growing competition, including new entrants and alternative ownership models, is reshaping the market and driving pricing competition.
Athora also recently completed a common equity rights issue, raising €3.5 billion to support the transaction financing. The company has now raised approximately €9 billion of common equity since inception in 2018, which it described as the largest amount of common equity raised by any European insurance company in the past decade.
Fitch Ratings revised Athora's 'A' (Stable) insurer financial strength rating to 'A' (Rating Watch Positive) in July 2025 following the announcement of the PICG acquisition.
The group's financial leverage ratio remained stable at 26%. In July 2025, Athora's revolving credit facility was amended and increased to €1.635 billion, with €1.27 billion remaining undrawn as at 31 December 2025.
Group chief executive officer Mike Wells said 2025 was "a defining year for Athora, marked by significant strategic advancement, disciplined execution and further strengthening of our market positioning."
"As we look ahead to 2026, Athora enters the next phase of its development with strong momentum, a clear strategic focus and the support of a leading and long-term investor base. The structural demand for secure retirement and savings solutions across Europe continues to grow, and Athora is uniquely positioned to meet that need," he added.
The European insurance sector is entering a more uncertain operating environment, with rising geopolitical tensions adding new layers of uncertainty. However, strong capital positions mean the sector is expected to remain resilient over the next 12 to 18 months despite the more challenging backdrop.
