Pension Corp. seeking UK£400m to grow pension risk transfer market

by Artemis on May 27, 2011

Pension Corporation, a UK insurer of pension plans and one of the largest players in the longevity risk transfer and pension de-risking markets, is seeking additional funding totalling UK£400m from an investment of fresh capital from Luxembourg based specialist investment fund Reinet.

An announcement from Pension Corp. today says that they are in exclusive negotiations with Reinet over the funding, which we assume means the deal is quite far along. “This investment would augment our existing capital resources, enabling PIC to maintain a market leading position in what we believe is a rapidly growing market for pension insurance and risk transfer,” said Pension Corporation’s chairman Mark Weinberg.

Reinet said in a statement to their shareholders: “Reinet Fund is exploring a number of investment opportunities. One of these opportunities is an investment in the pension insurance business of Pension Corporation. Pension Corporation is one of the UK’s leading providers of risk management solutions to defined benefit pension funds. It has transacted both the UK’s largest corporate and the first public sector backed pension insurance buyouts. Reinet Fund is in exclusive negotiations with Pension Corporation and its key stakeholders for a transaction involving the re-organisation of its capital structure and an investment by Reinet Fund of approximately £400 million through which it would become a principal shareholder in the business.”

Pension Corp. recently completed a UK£200m buy-in transaction with the pension scheme of the London Stock Exchange.

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