Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • March 2012
03

Pension Insurance Corporation reports 'strong' 2011

Open-access content Wednesday 28th March 2012 — updated 5.13pm, Wednesday 29th April 2020

Pension Insurance Corporation had a ‘strong year’ in 2011, attracting more than £600m of new pension insurance business, parent company Pension Corporation said today.

2

Unveiling its insurance operations' results for the 12 months to December 31 2011, Pension Corporation said this new business was spread across 11 transactions, for clients including Honda and the London Stock Exchange.

PIC now has £4.7bn in balance sheet assets and almost 55,000 pension fund members insured, with an embedded value of £671m at the end of the year, up from £631m a year earlier.

Pre-tax IFRS profit was, however, down from £81m in 2010 to £17m, a decline Pension Corporation attributed predominantly to wider credit spreads against a historically low gilt yield.

Pension Corporation noted that it saw no corporate bond defaults, as a result of 'careful management' of its assets, while its strong balance sheet meant it ended the year with a solvency ratio of 190% of the required minimum.

The firm also highlighted three 'client firsts' it saw last year, including the first ever insurance transaction to include the covering of future retirees, 'possibly the most rapid' pension insurance buyout -completed in eight hours, and the industry's first policy holders forums.

Pension Corporation's group chairman, Sir Mark Weinberg, said: 'Overall, PIC had a strong year. The business remains profitable, strong and continues to grow, although the overall total of business written was smaller than in previous years.

'Despite the economic turmoil during the summer, we saw no corporate defaults in our bond portfolio in 2011 and the comprehensive hedges we have in place on our interest rate and inflation exposures reinforced our high levels of security. Good news for our clients and policyholders.

Sir Mark acknowledged that the second half of the year had been 'torrid' for trustees who saw their funding positions worsen as a result of the eurozone crisis and low gilt yields. This made it difficult to complete liability insurance transactions, he explained.

'However, 2012 has started very strongly for PIC with a number of transactions completed, or in the final stages of completion. This includes a recently announced, ground-breaking transaction to insure an active pension scheme. We look forward to providing further innovative solutions for clients during 2012.'

This article appeared in our March 2012 issue of The Actuary.
Click here to view this issue
Filed in:
03
Topics:
Risk & ERM

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ