The Pension Insurance Corporation reported an increase of 165 per cent in its pre-tax profit to £276m in the 12 months to 31 December 2016.

Underlying operating profit grew from £133m in 2015 to £177m in 2016 and pre-tax profit climbed to £276m from £104m.

PIC recorded a total of £2.6bn of premiums in new pension insurance business with clients including Aon, Smiths Industries, GKN and ICI and £22.6bn in financial investments, up from £16.6bn in 2015. Insured pension fund members also grew to 134,900 from 132,100, year-on-year.

Longevity exposure reinsured during the year was £1.4bn, while 68 per cent of PIC’s longevity exposure was reinsured in 2016, this was a slight drop from 71 per cent the previous year.

On top of this, £500m of new regulatory capital was raised from a combination of new equity and further debt insurance.

Furthermore, 99 per cent of PIC policyholders expressed their overall satisfaction with the service and 86 per cent awarded the firm the highest score.

PIC chief executive officer Tracy Blackwell, said: “I am delighted that PIC continued to outperform in 2016. As we focus on paying the pensions of our policyholders we have developed a robust, sophisticated approach to managing risk and to recognising and seizing business opportunities as they arise. So we are very pleased with the strong financial performance of the company.

“But we are equally, if not more, pleased to have such strong engagement with our policyholders. As recognition of our focus on policyholder engagement, we are proud to have won the Institute of Customer Service’s “quality service provider 2017” award. This is a real reflection of the central role that high quality customer service plays within the company.

“We are extremely positive about the prospects for the company and continue to see a very strong pipeline of new business into 2017.”

PIC secured £380m of premiums in the first quarter of 2017, with a strong portfolio of new business lined up for the rest of the year, and will continue with its investment in infrastructure including Thames Tideway, social housing and student accommodation.

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