Pension Insurance Corporation (PIC), the specialist insurer of defined benefit pension funds, has announced plans to issue up to £750 million of new equity to support growth off the back of detailing its performance in 2019.
PIC has described the pension risk transfer market as “exceptionally buoyant” and says it exceeded its previous new business record with £7.2 billion of new business concluded in 2019, against £7.1 billion in 2018.
The firm states that strict underwriting discipline has ensured a very good set of financial results and the group is well positioned to deliver for all our stakeholders.
81% of longevity exposure was reinsured, while financial investments hit £40.9 billion.
225,000 pension fund members were insured in total, compared to 192,100 in 2018.
“2019 was a year of rapid, profitable growth for PIC, building on an excellent 2018,” said Tracy Blackwell, Chief Executive Officer of PIC.
“Over the past two years our financial investments have grown by 60%, policyholder numbers by 35%, employee numbers by 50% and we have invested more than £4 billion in areas such as social housing, renewable energy and university education, whilst maintaining underwriting discipline and a robust balance sheet.
“There remains a significant opportunity in the UK’s pension risk transfer market and this Capital Raise will position PIC well to help trustees de-risk their pension liabilities.”
