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PIC grows H1 profit amid “very busy” pension risk transfer market

14th September 2021 - Author: Matt Sheehan

Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension funds, has reported improved profitability over the first six months of 2021, amid what CEO Tracy Blackwell describes as a “very busy” pension risk transfer market.

Pension Insurance Corporation logoThe company posted adjusted operating profit of £221 million in H1, compared with £187 million during the same period last year.

Its solvency ratio also remained stable at 157%, which PIC says shows the durability of its balance sheet in what continues to be volatile market conditions.

Other H1 highlights for PIC included new business premiums of £385 million and exclusivity on almost £3 billion of transactions, with more deals expected to close by year end and into 2022

The firm’s investment portfolio was down slightly from £49.6 billion to £47.6 billion, with the decrease attributed to higher interest rates.

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“The business has performed robustly in the first half and I want to thank our employees who have worked hard to support the business and maintain very high levels of customer care for our policyholders,” said Blackwell.

“Our underlying profit has grown in the period and we go into the second half with a strong, resilient balance sheet and a large, long-term store of value,” she continued.

“After a slow start to the year, the Pension Risk Transfer market is once again very busy, and we have full pipelines for our privately-sourced debt investments and our Build-to-Rent projects. As we guarantee the pensions of our policyholders, we are driving investment into urban regeneration, renewable energy and social housing across the UK, creating jobs, helping fund the Race to Net Zero and supporting the Government’s levelling up agenda.”

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