The German financial supervisory authority BaFin has approved a transfer of pension assets from Bosch Pensionsfonds, the pension scheme for the employees of the German engineering and technology company, to WTW Pensionsfonds.

The transfer agreement became effective upon receiving the approval on 10 May, the regulator said in a note.

WTW declined to comment on the details of the transaction. BaFin did not reply to a request for comment.

This is the 12th transfer of pension assets approved by BaFin and seeing WTW Pensionsfonds as a buyer since 2014.

Among the deals, there is the takeover in 2020 of pension assets of MAN, a subsidiary of the German carmaker Volkswagen, of around 22,000 pensioners, and worth around €619m.

Energy company E.ON took over pension assets of the employees of Innogy, previously held with WTW, after setting up a Pensionsfonds. E.ON had transferred a portfolio of around 10,000 pensioners and around €2.5bn assets, from the RWE Pensionsfonds, in 2019.

WTW has set out to expand its pension business by taking over direct pension promises, Unterstutzungskassen (support funds) promises and portfolios of other Pensionsfonds, as reported.

The WTW Pensionsfonds has total assets under management of around €4.1bn, as of 31 December 2023.

WTW said that it was “once again strengthening its position” through the takeover of Bosch Pensionsfonds’ assets as a pension provider in the German market, and in particular as an “expert in the field of portfolio transfers from others pension funds”, Michael Karst, chief executive officer of WTW Pensionsfonds, told IPE.

WTW plans to continue pursuing such transactions in the future if companies or pension funds are willing, he added.

Bosch Pensionsfonds is, meanwhile, shifting to a new governance model, relying less on outsourcing. It is strengthening internal resources and expertise, with the aim of reinforcing the strategic and operational management of the pension fund, CEO Dirk Jargstorff said.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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