PENSION INSURANCE CORPORATION GROUP RECORDS STRONG FIRST
HALF TO 2024
London, 12 September 2024 - Pension
Insurance Corporation Group Limited1, ultimate parent
company of Pension Insurance Corporation plc ('PIC'), the
specialist insurer of UK defined benefit pension schemes, today
presents its results for the six months to 30 June 2024.
Tracy Blackwell, Chief Executive
Officer of PIC, said: "PIC had a strong first half as we focussed
on developing our offering for trustees seeking to de-risk their
members' pensions, including launching our streamlined service for
small schemes, Mosaic. We worked to improve our already excellent
levels of customer service for our policyholders and were pleased
to win multiple awards based on our customer service
offering.
"During the half we completed £3
billion of new business, including a transaction with the
TotalEnergies UK Pension Plan, covering £1.2 billion of
liabilities. This transaction was won in part due to the strong
relationship we forged with the Trustees in the decade since we
first insured the Plan's liabilities. We also continued to invest
in UK infrastructure and housing based on our partnership approach,
and intend to invest significantly more in these areas over the
coming years."
Highlights as at 30 June 2024
Policyholder payments and customer
satisfaction
-
Record number of pensions insured, at 348,600
(FY2023:
339,900)
-
Record policyholder pension payments of £1.1
billion during the six-month period.
o PIC has
now made £14.9 billion in policyholder pension payments
-
Customer service satisfaction levels of
99.3%
-
Re-awarded ServiceMark with Distinction by The
Institute of Customer Service for "consistently high customer
service levels"
-
Launch of "PIC on demand" our online policyholder
service with downloadable content
-
Six industry awards including the Pensions Age
"Risk Management Provider of the Year", UK Pensions Awards "Risk
Reduction Provider of the Year", and the Institute of Customer
Service "Trusted Quality Provider"
New
business, operating profit
-
£3 billion of new business completed in the
half across nine schemes (HY2023:
£6.5 billion), with clients including Next, De Beers, and
TotalEnergies
o Further
£1.6 billion of new business either in exclusivity, or signed, by
the end of August
o New
business pipeline of up to £45 billion
-
Launch of Mosaic, a streamlined service for small
pension schemes looking to complete a buyout
-
Became founding signatories to the Accounting for
Sustainability "Sustainability Principles Charter" for new pension
insurance transactions
-
New business CSM of £103 million (HY2023: £297 million), largely a
result of lower new business volumes compared to the same period in
2023, in which PIC completed the record £6.2 billion RSA
transaction
-
Adjusted operating profit before tax ("AOPBT") of
£272 million (HY2023: £506
million), also a result of lower new business volumes
compared to the same period in 2023
Robust balance sheet and low-risk portfolio
-
Solvency capital ratio of 234% (FY2023: 211%), considerably above
long-term average, with surplus of £4.8 billion (FY2023: £4.3
billion)
-
£47.7 billion in financial investments
(FY2023: £46.8 billion),
with insurance liabilities of £42.1 billion (FY2023: £41.2
billion)
o No
defaults in the portfolio
o No
exposure to residential ground rents
-
£1.1 billion invested in privately-sourced debt
investments during the period
o 45% of
these were with existing counterparties
-
PIC's first build-to-rent development, New Vic in
Manchester, has now been fully let, within a year of completion and
ahead of schedule
o Large
number of lets secured through recommendations
-
First two buildings completed in our £130 million
Wirral development - the cornerstone investment in the UK's largest
urban redevelopment project - with tenants expected to move in
soon
-
Given our very strong solvency levels, the Board
approved a special dividend of £107 million, as well as an interim
dividend of £147 million as part of the annual dividend cycle. This
equates to a total dividend of 19.0 pence per ordinary share to be
paid to PICG shareholders in September 2024
- PIC's pro
forma solvency ratio at 30 June 2024 was 227% allowing for the
payment of the interim and special dividends.
- ends -
Notes to Editors:
1) The Pension Insurance
Corporation Group (the "Group") includes PICG, the group holding
company; PIC, the group regulated insurer; and Pension Services
Corporation Ltd, the group service company
For further information please
contact:
PIC
Jeremy Apfel
+44 207 105 2140
apfel@pensioncorporation.com
About PIC
The purpose of PIC is to pay the
pensions of its current and future policyholders. PIC provides
secure retirement incomes through comprehensive risk management and
excellence in asset and liability management, as well as
exceptional customer service. At half year 2024, PIC had insured
348,600 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 UK
defined benefit pension schemes. At 30 June 2024, PIC had made
total pension payments of £14.9 billion to its policyholders
and had invested more than £13 billion in the UK
economy, creating considerable social value. 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