REG - Pension Ins Corp plc - PIC Records Strong Start to the Year
19/06/2023 08:15
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RNS Number : 0545D Pension Insurance Corporation PLC 19 June 2023
PIC RECORDS STRONG START TO THE YEAR, WITH BUSY PIPELINE FOR 2023 AND BEYOND
London, 19 June 2023 - Pension Insurance Corporation Group Limited(1),
ultimate parent company of Pension Insurance Corporation plc ('PIC'), the
specialist insurer of UK defined benefit pension schemes, today provides a PIC
company update and pension risk transfer market outlook.
PIC highlights as at 31 March 2023
- New business premiums of £6.2billion(2) (FY2022: £4.1billion),
following the record buy-in of two schemes sponsored by RSA Group, with a new
business pipeline of more than £50 billion
- Estimated Solvency Ratio of 193%, based on 31 March 2023 economic
conditions, post full implementation of the RSA Group transaction and payment
of the inaugural dividend (YE2022: 225%), places us in a strong position to
help UK defined benefit pension scheme trustees de-risk their pension
liabilities
- Portfolio of £47 billion (YE2022: £41 billion):
o No defaults for the year to date;
o No exposure within the portfolio to small cap technology firms;
o Bank investments are primarily in large, well-diversified institutions, with
no exposure to US regional banks; and
o No direct commercial real estate loans and limited exposure to commercial
property more generally, representing less than 2% of the portfolio, with an
average rating of A+
- In March 2023, Fitch Ratings affirmed PIC's A+ (Strong) Insurer
Financial Strength rating
- Inaugural dividend of 7.5 pence per ordinary share paid to PICG
shareholders(3)
Tracy Blackwell, CEO of Pension Insurance Corporation plc, said: "PIC has had
a strong start to the year. We have completed the largest ever pension risk
transfer transaction, continued to invest in assets across the economy
generating high levels of social value, and our defensive portfolio has
continued to perform well.
"We have also maintained a robust balance sheet, which will serve us well as
we seek to meet the demand from pension scheme trustees for pension risk
transfer transactions. With more than £13 billion having been transacted
already this year, we expect 2023 to continue to be very busy. We have a new
business pipeline of more than £50 billion and therefore expect demand to
remain high for an extended period of time."
- ends -
Notes to Editors:
1) The Pension Insurance Corporation Group (the "Group") includes PICG,
the group holding company; PIC, the group regulated insurer; and Pension
Services Corporation Ltd, the group service company
2) The £6.2 billion total transaction also included an element of
deferred premium
3) Inaugural dividend was paid in May 2023
For further information please contact:
PIC
Jeremy Apfel +44 207 105
2140
apfel@pensioncorporation.com
About PIC
The purpose of PIC is to pay the pensions of its current and future
policyholders. PIC provides secure retirement incomes through comprehensive
risk management and excellence in asset and liability management, as well as
exceptional customer service. At year end 2022, PIC had insured 302,200
pension scheme members and had £41 billion in financial investments,
accumulated through the provision of tailored pension insurance buyouts and
buy-ins to the trustees and sponsors of UK defined benefit pension schemes. At
year end 2022, PIC had made total pension payments of £10.6 billion to its
policyholders. Clients include FTSE 100 companies, multinationals and the
public sector. PIC is authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and Prudential Regulation
Authority (FRN 454345). For further information please visit
www.pensioncorporation.com (http://www.pensioncorporation.com)
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