FrieslandCampina has completed a €1.5bn buyout with Achmea Pensioen & Levensverzekeringen N.V. (Achmea Pension & Life), insuring the pensions of around 8,000 former employees of Friesland Foods and FrieslandCampina.

The buyout concerns the so-called segregated investment account, which both parties have agreed to dissolve. The €1.5bn of invested assets, which were accrued before 2015 and have until now been managed by FrieslandCampina, will be transferred to Achmea Pension & Life.

Koninklijke FrieslandCampina N.V. chief financial officer, Hans Janssen, said: “FrieslandCampina is pleased to have reached an agreement with Achmea Pension & Life. This step contributes to a solid and reliable future for the participants’ pensions.

“We are confident that this is in the best interest of their financial security. All participants will be fully informed in the near future about this change and what it means for them.”

This latest deal aligns with Achmea’s ambition of growing in the pension buyout market, with the aim of acquiring a market share of around 20 per cent.

Its attraction is linked to the reform of the Dutch pensions system, where schemes have until 1 January 2028 to transfer to the new system. In the run-up to this, pension funds are considering whether to transfer to the new system or, for example, opt for a buyout instead.

As part of Achmea's goal in this area, in November 2024, it announced a joint venture with Sixth Street, expected to commence in the second half of 2025. Sixth Street, the principal shareholder of Lifetri, is acquiring 20 per cent of the shares of Achmea Pension & Life by contributing Lifetri and paying €445m to Achmea.

Achema believes the joint venture, as well as bringing new customers and economies of scale, will also provide additional growth opportunities in the market for pension buyouts.

Achmea B.V. member of the executive board and responsible for the pension business, Daphne de Kluis, said: “I’m very pleased with this buy-out. The transaction enables us to take over full responsibility for this pension scheme from FrieslandCampina.

“It’s a good fit with the long-term and close relationship we have built up together. The participants will remain our customers and be able to rely on excellent service and professional asset management, just as they did before. Furthermore, this agreement aligns seamlessly with our ambition to grow in the pension buy-out market.”

In addition, Achmea has a goal to increase the Pension & Life business’s capital generation by €100m starting from 2028 through the merger with Sixth Street. It said this buy-out will contribute to this goal. However, the initial impact on Achmea Group’s solvency ratio will be about -5 percentage points.

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