Banca Transilvania Financial Group reached an agreement with BRD – Groupe Societe Generale and Societe Generale Assurances for the acquisition of BRD Societate de Administrare a Fondurilor de Pensii Private (BRD Pensii), a company active in Romania, in the field of mandatory private pensions (Pillar II) and optional private pensions (Pillar III).

For the acquisition, the approval of the Financial Supervisory Authority (ASF) is required in Romania.

BRD – Groupe Societe Generale specifies that BRD Pensii is a company with a non-essential activity for the Group in Romania, and the completion of the transaction is expected to take place in the first semester of next year.

According to the BT Group press release, the private pension system in Romania, including mandatory and optional pension funds, means total assets of over 131 billion RON, at the end of 2023, and compared to GDP, this represented 8.48% of the Gross Domestic Product annually, recording positive net nominal returns over the past 15 years.

Private pension funds have more than 8.8 million participants, and their main objective is to prudently invest in quality assets to obtain additional value for them after retirement age.

BRD Pensii administers both the fund from the mandatory private pensions (FPAP BRD) and the fund from the optional private pensions (FPF BRD Medio). More than 560,000 participants contribute to the privately administered pension fund BRD Pensii.

The optional pension fund BRD Medio has over 37,500 participants and records one of the highest average contributions per participant.

The value of net assets of the privately managed pension fund BRD Pensii was over 5.4 billion RON, and the value of the total assets of the optional pension fund BRD Medio was over 232 million RON, on December 31, 2023. The annualized yield from inception to at the end of 2023 it is 6.65% for the privately administered pension fund of BRD Pensii, being 4.7% for the optional pension fund BRD Medio.

The Banca Transilvania group, through the Pensia Mea fund, managed by BT Pensii, has been on the optional pensions market since 2019, a debut also made through an acquisition. Since the completion of the transaction, BT Pensii has managed to double the number of participants in the optional pension fund Pensia Mea. Currently, Pensia Mea has almost 57,000 participants, and assets under management increased by 7.4% in the first three months of this year.

AGERPRES