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are you a policyholder? Policyholder Lounge
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Pension Insurance Corporation Pension Insurance Corporation
  • About us

    About us

    Our new brand Our purpose Who we are Our team
    The Board Management Working for us
    Our clients
    Testimonials Our culture and values
    Why the penguins?
    Customer care
    Vulnerable customers Making a complaint How to tell us that a policyholder has died How to avoid being scammed
    Our latest awards
    Awards archive
    Task Force on Climate-Related Financial Disclosures (TCFD)
    Modern Slavery Statement Diversity Statement Tax Strategy Our charity partners
  • What we do

    What we do

    Overview
    What is a pension insurance buyout?
    Route to buyout
    What is a pension insurance buy-in?
  • How we do it

    How we do it

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    Innovative and flexible Risk management
    Financial strength & security
    Operational excellence
    Treating customers fairly
    Asset and Liability Management
    Infrastructure investment
  • Financials

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    PICG FY 2021 Financial Highlights Bondholder information
    Credit rating Bondholder documentation
    PIC and PICG Financial Results and Reports
    Regulatory returns
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Financial strength & security

The financial model

PIC’s strategy is to manage the assets associated with defined benefit pension scheme liabilities and to make a consistent margin on these assets over the very long term.

The liabilities that we take on are in respect of the obligations to pay the pensions of members or former members of pension schemes.

As these obligations are highly predictable and the majority are non-callable, we are able to invest in assets with a very long-term investment horizon.

PIC is authorised to write long-term insurance business by the Prudential Regulation Authority (“PRA”) and regulated by the PRA and the Financial Conduct Authority (“FCA”). We operate in a highly regulated environment where our UK prudential regulator, the PRA, requires us to invest our assets and measure our liabilities in accordance with strict and detailed rules and guidance.

The PRA also requires us to hold capital over and above the assets required to pay out policyholder benefits, as an additional safeguard for policyholders.

From 1 January 2016 a new regulatory framework for the insurance industry, Solvency II, has been introduced in the UK and replaces the former Pillar 1 and Pillar 2 approach. Solvency II generally increases the levels of minimum capital required by insurance companies to protect pension liabilities as compared to the minimum requirements of Solvency I. Solvency II also enforces the principle of cash-flow matching, so that assets and liabilities in an insurer’s portfolio now have to be exactly matched. This ensures that insurance companies are able to pay out pensions at the right point in time across the whole lifetime of the pensioner. 

PIC's Solvency II ratio

2021 - 168%

2020 - 157%

 

The Solvency II regime was implemented on 1 January 2016 with comparative information prepared for 2015.

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© Copyright 2022 Pension Insurance Corporation plc

by Emperor

Pension Insurance Corporation plc is registered in England and Wales under company number 05706720. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). Its registered office is at 14 Cornhill, London EC3V 3ND.
 
PIC is proud to hold a range of industry awards and accreditations. See our latest awards.

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