UK broker TP ICAP DB pension surplus falls as assets decrease

The surplus of UK broker company TP ICAP’s defined benefit (DB) pension scheme fell by £2m year-on-year to £55m, as of 31 December 2018.

In its 2018 final results announcement, TP ICAP revealed that the scheme's assets fell by £17m between 31 December 2017 and 2018, to £243m.

Its report noted that “the decrease reflects the investment return on the assets less amounts paid as benefits and transfers”.

The fall in asset values was offset slightly by the company’s liabilities also decreasing, from £203m to £188m, although it was not enough to prevent the scheme’s surplus declining.

TP ICAP’s report explained: “The valuation of the scheme's liabilities at the end of the period reflects the demographic assumptions adopted for the most recent triennial actuarial valuation and a discount rate of 2.7 per cent.”

There was a slight increase on the discount rate, which was up from 2.4 per cent at the end of 2017.

TP ICAP has one DB pension scheme in the UK, which is closed to new members and future accruals, and its annual administration costs remained unchanged at £1m.

The broker firm also revealed that it has taken a £65m non-cash charge relating to the value of its assets, after it announced a sizable profits warning in the summer of 2018.

Commenting on the yearly report, TP ICAP CEO, Nicolas Breteau said: “Whilst there is more work to do, real progress has been made with the integration in the past year. When this is complete, I am confident we will be in a position to enhance that value as we aggregate liquidity and the data it provides across all our brands and regions.

“We have continued to diversify our products and services to meet our clients' evolving needs, and I expect the pace of this will accelerate as a result of our increased technology investment.

“The political and economic environment continues to present us with both opportunities and challenges. However, I am confident that with a renewed strategy, founded on our strategic pillars, and renewed sense of purpose we are in a good position to navigate these successfully, and make the most of the many opportunities we have to grow."

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