Pension Insurance Corporation Group Limited (PIC), the ultimate parent company of Pension Insurance Corporation plc, the specialist insurer of UK defined benefit pension schemes, has provided a PIC company update and pension risk transfer market outlook.
PIC highlights that as of 31 March 2023, new business premiums of £6.2 billion were recorded in comparison to FY2022’s £ 4.1 billion.
This followed the record buy-in of two schemes sponsored by RSA Group, with a new business pipeline of more than £50 billion.
The company’s estimated solvency ratio is 193%, based on 31 March 2023 economic conditions, post full implementation of the RSA Group transaction and payment of the inaugural dividend standing in contrast from 225% at the year-end of 2022. This places the company in a strong position to help UK defined benefit pension scheme trustees de-risk their pension liabilities
The company’s portfolio is £47 billion, contrasting the £41 billion that was at the end of 2022.
There are no defaults for the year to date, no exposure within the portfolio to small-cap technology firms and bank investments are primarily in large, well-diversified institutions, with no exposure to US regional banks.
The company also has no direct commercial real estate loans and limited exposure to commercial property more generally, representing less than 2% of the portfolio.
In March 2023, Fitch Ratings affirmed PIC’s A+ (Strong) Insurer Financial Strength rating.
Tracy Blackwell, CEO of Pension Insurance Corporation plc, said, “PIC has had a strong start to the year. We have completed the largest ever pension risk transfer transaction, continued to invest in assets across the economy generating high levels of social value, and our defensive portfolio has continued to perform well.
“We have also maintained a robust balance sheet, which will serve us well as we seek to meet the demand from pension scheme trustees for pension risk transfer transactions. With more than £13 billion having been transacted already this year, we expect 2023 to continue to be very busy. We have a new business pipeline of more than £50 billion and therefore expect demand to remain high for an extended period of time.”
