REG - Pension Ins Corp plc - Pension Insurance Corporation Group 2020 Results
PENSION INSURANCE CORPORATION GROUP
2020 RESULTS
London, 18 March 2021 - Pension Insurance Corporation Group Limited1 ("PICG" or the "Company"), ultimate parent company of Pension Insurance Corporation plc ("PIC"), the specialist insurer of defined benefit pension schemes, today announces its final results for the 12 months to 31 December 2020.
A presentation for bondholders and other stakeholders on the 2020 final results will be available from 10.30am GMT, on 18 March 2021, at the following link: https://www.investis-live.com/pension-insurance-corporation/602d10c72fb49a0a00f2fb71/fwef
PICG 2020 financial highlights:
- Seven new business transactions with total premiums of £5.6 billion (2019: £7.2 billion), for clients including the Old British Steel Pension Scheme, the Co-op Pension Scheme and the Merchant Navy Officers Pension Fund (MNOPF)
- Profit before tax £276 million (2019: £394 million)
- £49.6 billion in financial investments (FY2019: £40.9 billion)
- Market Consistent Embedded Value (MCEV) of £5.0 billion (FY2019: £3.9 billion)
- Adjusted Equity Own Funds2 of £5,915 million (FY2019: £4,504 million)
- IFRS Net Asset Value of £4,167 million (FY2019: £3,215 million)
- Solvency Capital Ratio of 157% (FY2019: 164%)
- 84% of longevity exposure reinsured in aggregate
- 273,500 pension scheme members insured in total (2019: 225,100)
- In October 2020, PIC was re-affirmed an Insurer Financial Strength credit rating of A+ by Fitch
Business highlights:
- £1.8 billion invested in areas such as social housing, renewable energy and not-for-profits (2019: £1.9 billion)
- 98.7% of policyholders surveyed have indicated that they are satisfied or better with our customer service
- The Group successfully completed a £750 million equity raise from existing shareholders to support continued growth of the business in the Pension Risk Transfer market
- The Group's subsidiary, PIC, successfully issued £300 million of Tier 2 subordinated notes in May 2020 and a further £400 million of Tier 2 subordinated notes in October 2020
- PIC was re-awarded "ServiceMark with Distinction" by the Institute of Customer Service; was named "Pensions Insurance Firm of the Year" at the European Pensions Awards, "Risk Reduction Provider of the Year" at the UK Pension Awards, and "Risk Management Provider of the Year" at the Pensions Age Awards
Tracy Blackwell, Chief Executive Officer of PIC, said: "I am immensely proud that the Company has had such a good year despite the challenging social and economic circumstances. First, I want to thank all our employees, who have demonstrated resilience and flexibility and put in much hard work in sometimes difficult personal circumstances.
"PIC's purpose provided a focal point for the entire business during this very difficult year, in which we guaranteed the pensions of tens of thousands of people, backing their benefits with a purposeful investment strategy leading to significant investments in renewable energy and social housing. Throughout the pandemic we have maintained our commitment to excellence in customer service and so it was pleasing that we were re-awarded the ServiceMark with Distinction for delivering first class customer service.
"The business ended the year financially strong with an enhanced reputation for customer service. There were many challenges throughout the year, but I am looking forward to 2021 as a year when we can return to some level of normality, which will only benefit our policyholders, employees and other stakeholders."
- 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) Adjusted Equity Own Funds is calculated as Solvency II own funds deducting hybrid debt (including Restricted Tier 1 debt) and removing the impact of the Risk Margin and the Transitional Measures on Technical Provisions (TMTP's), disregarding any tax impact.
3) Summary of Key Financial Metrics for 2020 (£ million where relevant):
PICG (unless indicated otherwise):
FY2020
FY2019
Embedded value (MCEV)
4,964
3,874
Own funds*
6,710
4,844
Adjusted Equity Own Funds*
5,915
4,504
Solvency capital requirement*
4,261
2,954
Solvency ratio*
157%
164%
New business premium
5,649
7,186
Financial investments
49,648
40,886
IFRS net asset value
4,167
3,215
*Refers to PIC plc
For further information please contact:
PIC Jeremy Apfel +44 (0)20 7105 2140
Teneo Douglas Campbell +44 (0)20 3757 9247
douglas.campbell@teneo.com
About PIC
The purpose of PIC 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 31 December 2020, PIC had insured 273,500 pension scheme members and had £49.6 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
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.ENDACSGPUQWWUPGGPM
