On the go: The Pension Insurance Corporation has completed nine de-risking transactions totalling £6bn in the first half of 2018, a record for the company with a pipeline of new business of more than £40bn.
A trading update issued on Friday also revealed the company plans to raise further debt capital, which PIC says will be used to optimise its capital position and support further business growth.
The financial results for the six months to June 30 2019 reveal that although there was deterioration in the insurer’s solvency capital ratio of 157 per cent (167 per cent at the end of last year) IFRS Prudent margins rose to £2.8bn from £2.5bn. More than 75 per cent of PIC’s longevity exposure is reinsured.
The number of pension fund members soared to 218,000 from 192,100.
Commenting on the update, Tracy Blackwell, chief executive of PIC, said: “The business has had an excellent first half, with record new business in the period and record levels of longevity reinsurance undertaken.
“A key focus for the business in the next few months will be investing the proceeds of our new business, which will generate further profitability and enhance the value of the business. The pipeline of new business opportunities is exceptionally strong, and we expect a busy second half of the year.”
