PIC invests further £30 million in Livin housing

London, 11 February 2021 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a second debt investment, totalling £30 million, in County Durham based housing association, Livin Housing Limited (“Livin”). PIC has now invested £95 million in Livin, following an initial £65 million debt investment in April 2019, helping to fund the development of 450 new homes in the North East of England over the next three years, as well as enhancing existing housing, as part of Livin’s capital programme.

Livin manages around 8,400 homes across County Durham. It was formed in 2009 when Sedgefield Borough Council transferred council housing to the housing association via a Large-Scale Voluntary Transfer.

Key points of the transaction:

• £30 million funding split into three tranches with drawdowns in 2021, 2022 and 2023, and maturities split between 2054 and 2059
• Maturity profile has been tailored to match PIC’s pension liabilities in years where it is difficult to source cashflows in the public bond markets
• The funds are secured on a portfolio of social housing properties based in the North East

The social housing sector continues to be important for PIC to invest in. PIC’s experienced, specialist in-house team has a strong track-record of working with housing associations on bespoke funding transactions.

Sean Brodie, Executive Director of Finance and Development at Livin, said: “We are delighted to have secured this additional long-term funding. The deferred element is particularly helpful as it provides us with certainty of future funding, at a known cost.

“PIC’s team were flexible in providing a funding structure that meets our needs and proactive in helping us complete the transaction during volatile markets and I’d like to thank them for their efforts.”

Eugenia Korobova, Debt Origination Manager at PIC, said: “We are very happy to have again invested in Livin, a respected social housing provider. Sourcing secure, long-dated cash flows such as these is important to PIC as we focus on our purpose of paying long-term pension liabilities. This focus has important outcomes for society, including the provision of social housing, and securing more pension liabilities. This means that more trustees can guarantee their members’ pensions through insurance-based pension risk transfer, greatly improving their financial security in retirement.”

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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

About Pension Insurance Corporation
The purpose of Pension Insurance Corporation (“PIC”) plc is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At half-year 2020, PIC had insured 237,600 pension scheme members and had £47.7 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 visitwww.pensioncorporation.com