PIC racks up £4.5bn of bulk annuity business in 'best ever' year so far
Sales in Pension Insurance Corporation's (PIC) bulk annuity business rose by 73% compared to the same period last year, its half-year results have revealed.
The figures, published today (10 September), reveal the insurer wrote £3.3bn of bulk annuity business in a record H1, covering benefits for 162,800 people. This is up from £1.9bn across 151,600 people in the same period in 2017.
Since June, the insurer has also completed transactions totalling £1.2bn, with a further £1.6bn expected "in exclusivity" for the remainder of the year.
So far this year, PIC has disclosed a number of deals, including its most recent £75m buyout of the Menzies Pension Fund, as well as an £800m buyout of the new BHS scheme and a £1.3bn pensioner buy-in of the Siemens pension scheme.
Around £2.1bn of benefits have been insured through buy-ins, while a further £1.9bn have been covered in buyouts. The breakdown of the remaining £400m of transactions is unknown.
PIC chief executive Tracy Blackwell said the business has had its "best ever first half", adding "it looks set to be a record year for the market and the pipeline for 2019 is already very promising".
The firm also reported it reinsured £1.1bn, or 67%, of its longevity exposure in H1, some of which was in a $1.2bn (£900m) in a deal with Prudential Insurance Company of America. Since June, a further £1.3bn of its exposure to longevity risk has also been reinsured.
The firm also recorded investments into private debt - such as social housing and renewable energy - totalled £3.8bn as at 30 June 2018.
Overall, the firm's accounting profit before tax was recorded at £123m, down 12% on the £140m figure recorded in the same period in 2017.
PIC has conducted the largest volume of disclosed bulk annuity transactions so far this year, representing around 39% of all deals when also including longevity swaps. Its nearest rival is Aviva, which has completed just over £1.5bn of deals.
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