TIDM37PB
RNS Number : 7260N
Pension Insurance Corporation PLC
27 September 2023
PIC ANNOUNCES RECORD FIRST HALF
London, 27 September 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 presents its results for the six
months to 30 June 2023.
Tracy Blackwell, Chief Executive Officer of PIC, said: "I am
pleased to report that PIC had an excellent first half of the year.
We completed the largest ever bulk annuity transaction, as well as
paying more than GBP1 billion of pension payments, our highest ever
six-monthly figure, on which we had a customer satisfaction rating
of 99.3%.
"We created significant social value through our purposeful
investment strategy, investing more than GBP1 billion in
infrastructure assets during the six-month period. This includes
funding the UK's first reservoir for more than 30 years and
completing our second investment to support the UK's Government
Property Agency, investing GBP268 million in their Croydon hub. We
are delighted that our private rental sector development at
Manchester New Victoria has now welcomed its first tenants.
"With a solvency ratio of 210%, the strength of our balance
sheet will serve us well as increasing numbers of well-funded
defined benefit schemes seek the security of the insurance
regulatory framework."
Highlights as at 30 June 2023
Policyholder payments and customer satisfaction
- Record pension payments of GBP1.1 billion, with customer satisfaction score of 99.3%
- Record number of pensions insured, at 339,900 (FY2022: 302,200)
- PIC won several awards based on our customer service,
including the Customer Commitment Award at the Institute of
Customer Service Awards, Risk Reduction Provider of the Year award
at the UK Pensions Awards, and Risk Management Provider of the Year
at the Pensions Age awards
Record new business, strong operating profit growth
- New business premiums of GBP6.5 billion (HY2022: GBP2.4
billion), which primarily includes the record buy-in of two schemes
sponsored by RSA Group
- Significant growth potential in the UK pension risk transfer
market: potential for over GBP200 billion of UK PRT demand over the
next three years
- Our numbers are reported under IFRS 17 for the first time, and
the comparatives, where noted, have been restated accordingly
- Adjusted operating profit before tax(2) ("AOPBT") of GBP506
million (HY2022: GBP152 million), driven by higher new business
profits and expected returns on surplus assets
- Inaugural dividend of 7.5 pence per ordinary share paid to PICG shareholders
Robust balance sheet and low risk, purposeful investment
portfolio
- Strong capital position with solvency ratio of 210% (FY2022: 226%)
- Portfolio of GBP44.9 billion(3) (FY2022: GBP41.2 billion),
with insurance liabilities(4) of GBP38.7 billion (FY2022: GBP33.7
billion)
o No defaults for the year to date and more upgrades than
downgrades in the portfolio
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
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+
- GBP1 billion of privately sourced debt investments in the first half
- In September 2023, Fitch Ratings affirmed PIC's A+ (Strong) Insurer Financial Strength rating
- 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 comparatives for AOPBT have been restated for the adoption of IFRS 17
3) The comparatives for financial investments have been restated for the adoption of IFRS 9
4) The comparatives for insurance liabilities have been restated for the adoption of IFRS 17
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
half year 2023, PIC had insured 339,900 pension scheme members and
had GBP44.9 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.
PIC has made total pension payments of almost GBP12 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
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