REG - Pension Ins Corp plc - Pension Insurance Corporation Group 2022 Results

British American TobaccoAnnouncement

20/03/2023 08:15

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RNS Number : 3934T  Pension Insurance Corporation PLC  20 March 2023

PENSION INSURANCE CORPORATION GROUP

2022 RESULTS

 

London, 20 March 2023 - Pension Insurance Corporation Group Limited(1) ("PICG"
or the "Company"), ultimate parent company of Pension Insurance Corporation
plc ("PIC"), the specialist insurer of UK defined benefit pension schemes,
today announces its final results for the 12 months to 31 December 2022.

 

A presentation for bondholders and other stakeholders on the 2022 final
results will be available from 8.00am GMT, on 20 March 2023, at: PICG 2022
Bondholder Presentation
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.investis-live.com%2Fpension-insurance-corporation%2F63e508f533aa1a12007858e0%2Fasdf&data=05%7C01%7CApfel%40pensioncorporation.com%7C6d3a00af66544d07804308db25406084%7Cc9da0d0ef2354e9ab399246a120ebd3e%7C1%7C0%7C638144730646084075%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=3Ll2Zhq%2B6lQSyu1l3dAYiQM4GDvDiStgfFoYZpR0OUo%3D&reserved=0)

 

Resilient balance sheet and conservative investment portfolio

-     PIC solvency ratio of 225% (FY2021: 168%)

-     Shareholder equity own funds(2) of £5,160 million (FY2021: £4,619
million)

-     Adjusted operating profit of £388 million (FY 2021: £533 million)

-     Portfolio of financial investments of £41 billion (FY2021: £51.1
billion), with gross insurance liabilities of £33 billion (FY2021: £47
billion) - decreases mainly attributable to higher interest rate environment

-     No defaults and limited downgrades within the portfolio

-     87% of longevity exposure reinsured in aggregate

-     In May 2022, Fitch Ratings affirmed PIC's A+ (Strong) Insurer
Financial Strength rating

-     Inaugural dividend of 7.5 pence per ordinary share to PICG
shareholders

 

Long-term partnership approach generating social value

-     Total new business premiums of £4.1 billion (FY2021: £4.7
billion), including for long-term clients IMI and British American Tobacco.
Market leading £6.5 billion buy-in with two Schemes sponsored by RSA
announced in February 2023

-     To date, 75 repeat transactions completed with trustee clients,
covering £15 billion of liabilities, and the benefits of over 90,000 scheme
members

-     £2.1 billion invested in privately sourced debt in 2022, including
in sectors such as social housing, electrified rolling stock, and urban
regeneration, with more than 20% of these investments being with existing
partners during the year

-     To date, PIC has made £11.4 billion of UK direct investments

 

Policyholder care and customer service

-     302,200 pension scheme members insured at year end (2021: 282,900)

-     £1.76 billion of pensions paid in the year, with £10.6 billion
paid since 2013

-     99.6% customer satisfaction level as expressed by PIC's
policyholders (FY2021: 99.6%)

-     Resumed in-person policyholder events, with more than 25,000
attendees across the country to date

 

Employee responsibility

-     89% of employees are proud to work at PIC

-     Mean gender pay gap of 10.2% (2021: 18.4%), well below the financial
services average of 26.5%(3)

-     Awarded "Investors in People" silver accreditation

 

Tracy Blackwell, Chief Executive Officer of PIC, said: "PIC had a strong year
and our focus on our purpose of paying the pensions of our current and future
policyholders ensured that we ended the year with an increasing presence
across the country, creating considerable social value. As a result of our
robust year end solvency ratio of 225% we are ideally placed to help trustees
secure their members' benefits, and indeed after year end announced the
largest ever bulk annuity transaction, a £6.5 billion buy-in with two schemes
sponsored by insurance company RSA.

 

"Our long-term approach to relationships underpins a significant amount of new
business and investment opportunity. In total, we have now completed 75 repeat
transactions with trustee clients, covering £15 billion of liabilities, and
the benefits of over 90,000 scheme members, including two significant
transactions in the year. On the asset side of the balance sheet, over 20% of
our privately-sourced debt investments were with our existing partners during
2022.

 

"We remain focused on providing excellent customer service and were proud to
have policyholder satisfaction levels in excess of 99% on pension payments of
more than £1.7 billion during the year. I'm delighted that we were able to
restart our in-person policyholder events, our first since 2019.

 

"Finally, it's pleasing that as a result of the strength of the balance sheet
and many years of hard work, the Board proposed an inaugural dividend of 7.5
pence per ordinary share to the Group's shareholders. I look forward to a
successful 2023."

 

- 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.

2)   Defined as PIC Solvency II own funds, with notional RT1 and Tier 2 debt
deducted

3)   Industry-wide figures as at October 2021, latest available.

 

For further information please contact:

 

PIC
            Jeremy Apfel   + 44 (0)207 105 2140

 
apfel@pensioncorporation.com (mailto:apfel@pensioncorporation.com)

 

Apella Advisors for PIC                   Anthony Silverman
+44 (0)7818 036579

 
            PIC@apellaadvisors.com (mailto:PIC@apellaadvisors.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 year end 2022, PIC had insured 302,200
pension scheme members and had £41 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. To
date, PIC has made total pension payments of £10.6 billion to its
policyholders. 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 (http://www.pensioncorporation.com)

 

No Offer or Invitation and Selling Restrictions

This announcement does not constitute or form part of, and should not be
construed as, an offer or invitation to sell any securities, or the
solicitation of an offer to subscribe for or purchase any securities, and
nothing contained herein shall form the basis of or be relied on in connection
with any contract, investment or commitment whatsoever.

 

This announcement is not intended for release, publication or distribution to
a person located or resident in any jurisdiction where it is unlawful to
release, distribute or publish this document. The securities referred to
herein have not been and will not be registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States,
except pursuant to an available exemption from registration.

 

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