Investment strategy
Asset-Liability Management
Pension Insurance Corporation (PIC) holds significantly higher levels of assets than is required to back our commitments as well as a conservative investment strategy, ensuring we are able to pay our policyholders' pensions as they fall due.
We are relentless in managing risk: we play to our strengths, and take action where we have concerns. In practice this means retaining those risks which we are able to control, such as investment risk, and hedging out those (external) risks over which we have no control, such as interest rate, inflation and longevity.
In order to ensure that our asset strategy will continue to provide returns which match our liabilities, we receive a daily report on our asset-liability position and our investment strategy committee meets every week. This takes into account the prevailing economic situation and other relevant factors.
Our results speak for themselves:
- PIC maintains a strong solvency ratio - 209% at December 2010
- Can withstand more than a 1-in-200 year event
- Conservative asset strategy - 88% in high quality bonds, Gilts and cash
Our assets are reviewed and managed on a day-to-day basis by a selection of the best fund managers in their respective fields.
“... we were able to run a competitive process to choose an insurer which demonstrated value for money, financial strength and strong operational credentials. PIC met these requirements and provided a flexible, innovative solution.”
Richard Stephens, FD, Toray Textiles Europe Ltd, June 2011
