CVC Capital Partners (CVC) is to buy the shares currently held by a number of investors in Pension Insurance Corporation Group (PICG), the ultimate parent company of Pension Insurance Corporation (PIC). The investment is subject to customary regulatory approvals.
PIC is a specialist insurer and leading provider of bulk annuities to UK corporate pension schemes, which have over GBP2,100 billion of pension liabilities. PIC’s business is built on superior customer service, robust risk management and expertise in asset and liability management. This model brings long-term security to the pensions of its policyholders and delivers attractive risk adjusted returns to its shareholders. PIC has in excess of GBP20 billion in financial assets, securing the benefits of more than 130,000 individuals.
This will be the third investment made from CVC’s Strategic Opportunities Platform, which was established in response to growing demand from large investors to be able to invest for the long term in stable, high-quality businesses.
Peter Rutland, Partner and Global Co-Head of the Financial Services team at CVC, says: “PIC is a leading pension insurance provider, with best-in-class customer service and client focus. There is growing demand from companies in the UK to remove the financial and operational risks related to their defined benefit pension obligations. PIC has already demonstrated its industry-leading ability to respond to this trend, providing its customers with long-term stability and financial security. We look forward to partnering with Tracy and her team as they continue to develop the company.”
Tracy Blackwell, CEO at PIC, says: “We will be delighted to work with CVC as our newest shareholder, an entirely positive development for the company. The combination of their financial services expertise and long-term, strategic financial support is important to us as we continue to meet the demand for securing pension obligations in the UK’s established and expanding pension insurance market.”
CVC was advised on the transaction by Jefferies, Ernst & Young, Oliver Wyman and Slaughter and May.
