TIDM37PB
RNS Number : 3717F
Pension Insurance Corporation PLC
12 July 2019
PENSION INSURANCE CORPORATION GROUP
FINANCIAL RESULTS SUMMARY FOR SIX MONTHS TO 30 JUNE 2019 AND
PROPOSED DEBT ISSUANCE
London, 12 July 2019 - Pension Insurance Corporation Group
Limited(1) ("PICG"), ultimate parent company of Pension Insurance
Corporation ("PIC"), the specialist insurer of defined benefit
pension funds, today provides an update on trading in the first
half of 2019 and announces PIC's intention to raise further debt
capital.
PIC has mandated J.P. Morgan Cazenove as Sole Structuring Agent
to the Issuer and HSBC, J.P. Morgan Cazenove and NatWest Markets as
Joint Lead Managers to arrange a series of fixed income investor
meetings, commencing 16 July 2019. A benchmark issue of GBP
perpetual non-call 10 year Restricted Tier 1 contingent convertible
notes in Reg S registered format will follow, subject to market
conditions. The notes are expected to be rated BBB- by Fitch and
will feature principal loss absorption in the form of contingent
equity conversion linked to compliance with the Issuer's regulatory
capital requirements.
The funds will be used to optimise PIC's capital position and
support further business growth due to the very strong demand for
pension risk transfer across the market.
PICG financial highlights in HY2019:
- Nine new business transactions with total premiums of GBP6
billion, a record for the period. As previously indicated, the
company has a pipeline of new business with more than GBP40 billion
of pension scheme liabilities looking to transact
- GBP39.6 billion in financial investments (FY2018: GBP31.4 billion)
- Market Consistent Embedded Value (MCEV) of GBP3,890 million (FY2018: GBP3,638 million)
- IFRS Net Asset Value of GBP2,528 million (FY2018: 2,457m)
- Solvency Capital Ratio of 157% (FY2018: 167%)
- IFRS Prudent margins of GBP2.8 billion (FY2018: GBP2.5bn)
- Over 75% of longevity exposure reinsured
- 218,000 pension fund members insured in total (FY2018: 192,100)
Business highlights:
- In February 2019, Fitch affirmed PIC's Insurer Financial
Strength Rating at 'A+' (Strong) and Long-Term Issuer Default
Rating (IDR) at 'A'
- PIC won the Institute of Customer Service's Customer Commitment Award
Tracy Blackwell, Chief Executive Officer 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.
"We continue to be selected by trustees not only on our ability
to offer flexible products that meet the needs of trustees, as well
as pricing, but also on our customer service for policyholders. In
recognition of this, I am delighted that we won our third award in
three years from the Institute of Customer Service. I look forward
to a strong second half of the year."
- ends -
Notes to Editors:
1) The Pension Insurance Corporation Group includes Pension
Insurance Corporation Group Limited, the group holding company;
Pension Insurance Corporation plc (PIC), the Group's regulated
insurer; and Pension Services Corporation Ltd, the group's service
company.
2) Summary Key Financial Metrics for HY2019 (GBP million where relevant):
HY2019 HY2018 FY2018
Embedded value (MCEV) 3,890 3,402 3,638
------ ------ ------
Own funds* 4,271 3,677 3,917
------ ------ ------
Solvency capital requirement* 2,714 2,106 2,343
------ ------ ------
Solvency ratio* 157% 175% 167%
------ ------ ------
New business premium 5,969 3,261 7,150
------ ------ ------
Financial investments 39,590 27,885 31,371
------ ------ ------
IFRS net assets value 2,528 2,181 2,457
------ ------ ------
*Refers to PIC plc
For further information please contact:
Pension Insurance Corporation Jeremy Apfel +44 (0)20 7105 2140
apfel@pensioncorporation.com
Teneo Douglas Campbell +44 (0)20 3757 9247
douglas.campbell@teneo.com
About Pension Insurance Corporation
The purpose of Pension Insurance Corporation ("PIC") plc 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 half-year 2019, PIC had insured
218,000 pension scheme members and had GBP39.6 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.
END
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