Pension Insurance Corporation General Information Description. An aim across the industry has been to source assets that qualify for Solvency II’s matching adjustment, a part of the rules that enables insurers to discount liabilities more favourably if they line up closely with designated asset cashflows. Europe’s Solvency II regulation requires insurers to hold a buffer of ‘tier one’ capital through equity or equity-like debt to protect policyholders – in this case, pensioners – against market volatility or a big investment loss. In July, PIC issued £450 million in convertible restricted tier-one (RT1) notes at 7 3/8% in a deal that was three times oversubscribed. In a few cases, PIC has ventured into new areas, making initial investments in lending to local authorities, for example. Please verify address for mailing or other purposes. The notes convert into equity in the event that PIC’s regulatory capital falls below required solvency levels. All rights reserved. You need to sign in to use this feature. PIC is part of a fast-growing insurance sub-sector that takes on pension liabilities from corporates either in part, through so-called pension buy-ins, or in full though pension buyouts. The firm’s ratio at mid-year had been 157%. The companies and people profiled on Corporation Wiki are displayed for research purposes only and do not imply an endorsement from or for the profiled companies and people. A pension buyout (alternatively buy-out) is a type of financial transfer whereby a pension fund sponsor (such as a large company) pays a fixed amount in order to free itself of any liabilities (and assets) relating to that fund. Receive an email notification when changes occur for Lincoln National Pension Insurance Company. Get the full list », To view Pension Insurance Corporation’s complete subsidiaries history, request access », To view Pension Insurance Corporation’s complete exits history, request access », Chief Executive Officer & Board of Director, Chief Financial Officer & Board of Director. If further highlights key decision stages in best-practice UMR planning and compares the…, Risk.net partnered with specialists NICE Actimize to survey senior financial crime executives in banks and other financial services firms to assess the efficiency of current resources, processes and …, Search and download thousands of white papers, case studies and reports from our sister site, Risk Library. CA Create a free account to access additional details for Lincoln National Pension Insurance Company and other profiles that you visit. Other insurers have invested more heavily in less run-of-the-mill assets, such as equity release mortgages and ground rents, which have long-term cashflow profiles well-matched to pension liabilities. Energy Risk Asia Awards 2020 submissions are now open! A foreign filing is when an existing corporate entity files in a state other than the one they originally filed in. 1981 Another way the firm unlocked capital last year, again setting a precedent for the wider industry, was in reinsuring deferred lives. Lincoln National Pension Insurance Company Overview. If you don’t have a Risk.net account, please register for a trial. “We target new business based on a pre-tax mid-teens internal rate of return – that’s about 12% post tax,” Sewell says. Get the full list », You’re viewing 5 of 22 board members. If you have one already please sign in. You are currently unable to print this content. It is “much more tricky” than conventional longevity reinsurance, which is limited to existing retirees, Sewell says. The bond issuance diversifies the firm’s funding and helps shareholders and bondholders by providing more options to adjust their exposure to PIC as they wish. Here, the firm is cautious. Ninety-eight percent of its fixed-income investments are rated investment grade. If an IPO has taken place, then the debt converts at 70% of the IPO price. Data inaccuracies may exist. To use this feature you will need an individual account. Market consistent embedded value – a widely used insurance industry metric – climbed £250 million to £3.9 billion over the previous 12 months. Risk.net's award-winning conference, 25th annual Risk USA, is the eminent risk management event for North America's top tier banks, buy-side participants and industry regulators. The other party, usually an insurer, receives the payment but takes on responsibility for meeting those liabilities. Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.