Key facts
Pension Corporation provides innovative, bespoke risk management solutions, in addition to standard pension insurance buyouts and buy-ins, to the trustees and sponsors of defined benefit pension funds, bringing safety and security to member benefits.
Pension Corporation is the umbrella brand for:
- Pension Insurance Corporation (PIC), an insurance company authorised and regulated by the Financial Services Authority (FSA). It is the company with which our clients transact
- Pension Security Insurance Corporation Ltd (PSIC), a fully authorised Guernsey reinsurer. PSIC provides the capability to reinsure specific risks for pension funds and pension sponsors
Pension Insurance Corporation at a glance
- A UK insurer, authorised and regulated by the Financial Services Authority
- c.£4.5 billion of assets
- More than 50,000 pension fund members insured
- Overall Pension Insurance buy-in/buyout market leader from 2009 to 2011
- Tailored, competitive solutions, secured to the highest standards
- Insurance generally tailored to particular trustee and sponsor circumstances
- Consistently strong solvency position, ensuring security for policyholders
- No legacy insurance portfolio exposure issues
- High calibre Board
How secure is an Insurance Company?
- Insurance companies must fully fund a 'self-sufficient' measure of liabilities at all times
- Insurers must hold a capital buffer to withstand an extreme event (defined as a 1-in-200 year event) and still be in a position to meet its liabilities
- Investment policy is constrained to be predominantly in low-risk assets (bonds, gilts and similar)
- Stringent reporting and regulatory requirements form an early warning system to allow intervention before policyholders are threatened
- Insurers must always hold additional capital buffers over and above the self-sufficient liabilities
