PIC insures £3.3bn of pension liabilities in record H1 18

Written by Theo Andrew

Pension Insurance Corporation (PIC) has recorded its best ever half year results, after the group insured £3.3bn of pension scheme liabilities.

The group saw a 73 per cent increase in its bulk annuity business, insuring £1.1bn of longevity liability, while reinsuring 67 per cent of total longevity exposure, as at 30 June 2018.

Since posting its results, the group has completed transactions totaling £1.2bn, with “a further £1.6bn in exclusivity”.

PIC CEO, Tracy Blackwell, said: "It looks set to be a record year for the market and the pipeline for 2019 is already very promising. We are consistently being selected as the preferred insurance partner by trustees based on our flexibility, innovation and customer care and we are also seeing a greater number of repeat transactions as trustees progressively insure their schemes."

Altogether, PIC insured 162,800 pension members in H1 2018, up from 151,600 over the same period last year.

In June, the Abu Dhani Investment Authority (ADIA) took up a 21.4 per cent stake in PIC, from JC Flowers.

"We look forward to formally welcoming ADIA as a major shareholder, joining a small group of committed shareholders with financial services expertise and long-term investment horizons,” Blackwell added.

“As a specialist business, our focus remains entirely, with the total support of our shareholders, on investment in the areas that are key to our success, including policyholder care, the ability to invest in the right assets and reinsure longevity risk, as well as attract and retain the very best people. It is our belief that this focus will bring us further success over the long-term."

PIC added that is has arranged a series of investor meetings in order to raise capital to “support the growth of the business”, following increased demands of buy-ins and buyouts.

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