Pension Insurance Corporation reports £1.1 billion in new business

Pension Insurance Corporation (PIC) reported robust new business generation in H1 2025, securing £1.1 billion and reaching £5.5 billion through August, notably including a £4.3 billion buy-in with the Rolls-Royce UK Pension Fund. Despite a slight dip in adjusted operating profit to £314 million, PIC maintained a strong 236% solvency capital ratio, significantly above its target, while also announcing its acquisition by Athora Holding Limited, which is expected to close in early 2026 and position PIC as Athora’s UK insurance business within a growing £40-45 billion pension risk transfer market.

Analysis

Pension Insurance Corporation (PIC) demonstrated strong business momentum through August 2025, securing £5.5 billion in new business, predominantly driven by a significant £4.3 billion buy-in with the Rolls-Royce UK Pension Fund. This highlights the firm's capacity to execute large-scale transactions within a growing UK pension risk transfer market, which is forecast to reach £40-45 billion in 2025. Despite this growth, adjusted operating profit for the first half of the year saw a slight decline to £314 million from £326 million in the prior year period. However, the company's financial health remains exceptionally robust, evidenced by a 236% solvency capital ratio and a £4.6 billion surplus, well above its long-term targets. The key strategic development is the pending acquisition by Athora Holding Limited, expected to close in early 2026. This transaction will transform PIC into Athora's primary UK insurance business, positioning it for further growth under new ownership while it continues to deploy capital into UK real assets, with its investment portfolio in housing and infrastructure now totaling £14.6 billion.

Key Decisions for Investors

• Given the pending acquisition by Athora Holding Limited set to close in early 2026, direct investors in PIC should assess the terms of the buyout, while potential investors should shift their due diligence to Athora and its strategy for integrating PIC.
• Investors with exposure to the European insurance sector should note the strong tailwinds in the UK pension risk transfer market, forecast at £40-45 billion, which could benefit the combined Athora-PIC entity and its competitors.
• It is critical to monitor PIC's ability to maintain its robust 236% solvency ratio and new business generation momentum throughout the acquisition process, as these are key indicators of the asset's quality for the acquirer, Athora.
• The minor dip in adjusted operating profit to £314 million, despite strong new business flow, warrants closer examination of PIC's underlying profitability and expense structure ahead of its integration into a larger group.