PIC overview

Providing long-term financial security and stability for our customers and attractive returns for our shareholders

I’m pleased to say that the business enjoyed considerable success during the first half of 2018, being ideally positioned to help our clients remove risk from their pension schemes in what we expect to be the busiest year yet for buyouts and buy-ins. From the amount of new business written so far this year, as well as from the size of the market pipeline, we expect the market to surpass £20 billion for buyouts and buy-ins, compared to market volumes of £10 billion to £12 billion experienced in the last few years. As we announced to the market in July, we had our best ever first half, insuring £3.3 billion of liabilities (HY 2017: £1.9 billion). Our transactions included a £1.3 billion buy-in concluded with the Trustees of the Siemens Benefits Scheme, the third bulk annuity arrangement between us and a Siemens sponsored defined benefit scheme. We also concluded a £0.9 billion buyout with the PA Consulting Pension Scheme. The keys to our success, as I have previously noted, include our ability to look after policyholders, invest assets and reinsure longevity risk.

Tracy Blackwell Chief Executive Officer