PIC signs £5.8 billion of new business and reinsures £7 billion of longevity risk in H12019

London, 24 June 2019 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has concluded £5.8 billion of buyouts and buy-ins with the trustees of defined benefit pension schemes and reinsured £7 billion of longevity reinsurance so far in 2019, including the reinsurance of almost £1.5 billion of deferred (non-pensioner) lives. This is the first time such a significant amount of deferred lives has been reinsured in any one period and signals increased capacity for this type of risk within the reinsurance market.

In 2019, PIC has concluded transactions with pension schemes including those of Marks & Spencer, Dresdner and Co-op, as well as concluding £3.3 billion of new business with a series of unnamed pension schemes.

The £7 billion of longevity reinsurance covers lives associated with pension schemes that PIC has insured in 2019, as well as longevity exposure accumulated from prior years. The company has reinsured over 70% of its total longevity exposure and has signed treaties with 11 highly rated reinsurance counterparties. Longevity reinsurance is an intrinsic part of PIC’s business model. PIC wrote its first longevity reinsurance contract in 2008. In 2018 PIC completed £5.6 billion of longevity reinsurance.

Jay Shah, Chief Origination Officer at PIC, said: “This has been a record-breaking first half for PIC both in terms of the amount of new business transacted and longevity risk re-insured. On the longevity reinsurance we are especially pleased to have insured such a large amount of deferred lives. This is a significant development for the reinsurance market, where we are now starting to see the standardisation of these types of deals, which we have had for several years for pensioner deals.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation

Jeremy Apfel
+44 (0)20 7105 2140
apfel@pensioncorporation.com

Teneo

Douglas Campbell
+44 (0)20 3757 9247
douglas.campbell@teneo.com

About Pension Insurance Corporation

The purpose of Pension Insurance Corporation plc (“PIC”) is to pay the pensions of its policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At year-end 2018, PIC had insured 192,100 pension scheme members and had £31.4 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. 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). For further information please visit www.pensioncorporation.com

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