PIC releases 2013 results

Pension Insurance Corporation (“PIC”), a specialist insurer of defined benefit pension funds, today announces its audited results for the 12 months to 31 December 2013.

2013 financial highlights: 

• New pension insurance business of £3.7 billion of premiums, across 35 transactions, for clients including Citigroup/EMI Pension Fund, Vesuvius plc, the NSPCC and the Institute of Cancer Research 
• £9.4 billion in assets under management (2012: £6.2 billion), and almost 100,000 pension fund members insured 
• Statutory solvency ratio of 249% (2012: 251%)  
• Embedded Value of £1,290 million (2012: £890 million) 
• Pre-tax IFRS profit of £115 million (2012: £196 million)  
• £1.4 billion of longevity exposure reinsured during the year 
• Payment of annuities grew by 40% in 2013 to £291m (2012: £208m) as a result of new business written during the year 
• The highest value of buy-in and buyout transactions any insurer has written in a 12 month period

John Coomber, Chief Executive Officer of Pension Insurance Corporation, said: “2013 was a watershed year both for PIC and for the pension insurance market in general. With favourable movements in asset values and gilt yields, an increasing number of trustees and sponsors who had the desire to de-risk their pension schemes were able to afford to do so.

“PIC has now insured almost 100,000 pension scheme members and as that number has grown we have maintained a particular focus on customer service. I believe this is at the heart of a business that has long-term value. Worth noting in this regard is that in 2013 PIC gained Plain English Campaign’s Platinum status by having all applicable policyholder communications Crystal Marked and that PIC’s Senior Management met and spoke to over 1,500 customers at our Policyholder Forums and Christmas lunches, both of which are unique in our sector.

“Looking ahead we believe the appetite of corporate sponsors and trustees to use insurance as a tool to control and manage risk will continue to grow.”

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Notes to Editors:

1) The Embedded Value and Assets under Management figures are for the Pension Corporation Group, of which PIC is the principal operating subsidiary

For further information please contact:

Pension Insurance Corporation (PIC)
Jeremy Apfel
+44 20 7105 2140
apfel@pensioncorporation.com

About Pension Insurance Corporation
Pension Insurance Corporation (“PIC”) provides tailored pension insurance buyouts and buyins to the trustees and sponsors of UK defined benefit pension funds. PIC brings safety and security to scheme members' benefits through innovative, bespoke insurance solutions, which include deferred premiums and the use of company assets as part payment. PIC has almost £10bn in assets and has insured circa 100,000 pension fund members. 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).