PIC sees pension risk transfer market of £30 billion over the next year, covering up to 250,000 scheme members

Pension Insurance Corporation plc (‘PIC’), a specialist insurer of defined benefit pension schemes, today provides a company update and pension risk transfer market outlook following the recent market volatility.

Highlights

• robust balance sheet and strong liquidity position with a Solvency Ratio in excess of 200% at 30 September 2022
• new business premiums during 2022 to date of £3.4 billion (HY2022: £2.4 billion), a short-term pipeline of £10 billion, and an immediately addressable market of new business of an additional £20 billion, potentially covering the benefits of 250,000 people
• portfolio of £40.7 billion at 30 September 2022 (HY2022: £44.1 billion), with insurance liabilities of £31.7 billion at 30 September 2022 (HY2022: £37.6 billion) – decreases mainly attributable to higher interest rate environment
• direct investment in the UK’s economy of £2.2 billion in the year to date, including a £200 million investment in a Build to Rent skyscraper in Birmingham, and a fourth investment, of £40 million (£130 million total), in social housing provider mhs homes
• pensions paid of £1.3 billion in the year (as at 30 September 2022)
• awarded Investors in People Silver Standard 

One consequence of the recent rise in gilt yields is that whilst defined benefit pension schemes are much better funded, headline liabilities are smaller than they were at the start of the year. This will make pension risk transfer market volumes appear smaller over time, even though the number of members moving to the life insurance sector will be the same on a like-for-like basis.

Tracy Blackwell, CEO of Pension Insurance Corporation plc, said: