Pension Insurance Corporation Group Limited (PICG), the parent company of specialist insurer Pension Insurance Corporation plc (PIC), has announced the completion of its previously announced capital raise.
Under the arrangement, PICG’s existing shareholders will invest £750 million of new capital to support the continued growth of PIC in the pension risk transfer market.
PICG’s largest shareholder, Reinet Fund S.C.A., F.I.S., will invest £437.8 million and have a 46.4% stake in the Group.
Reinet is a specialised investment fund incorporated in Luxembourg. It first invested in the Company in 2012 and has now invested £983 million in total.
Additionally, Luxinva, a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA), will invest £171.6 million and have an 18.2% shareholding.
Luxinva reached an agreement to acquire 17.1% of PICG from funds advised by J.C. Flowers & Co. in June 2018.
And finally, CVC Strategic Opportunities I will invest £130.6 million and have a 17.4% shareholding. CVC originally invested in PICG in 2017.
60% of the total funds invested will be available to PICG immediately, with the remaining 40% callable upon request before 26 January 2021.
“The money we have just raised from our long-term, supportive shareholders will allow us to help increased numbers of defined benefit pension scheme trustees move their risks to a specialist insurer, guaranteeing their members’ benefits for life,” said Tracy Blackwell, Chief Executive Officer of PIC.
“The Company is financially strong, has a reputation for excellent customer service, and is operating in a huge growth market,” Blackwell added. “This significant investment by our existing shareholders is a vote of confidence in our growth plans.”
