Pension Insurance Corporation, the insurance company that specialises in buying out or insuring burdensome defined benefit (DB) schemes, has raised an additional £250m in investor capital to fund expansion.
The insurer, which claimed it has about 25 per cent share of the market and competes with the likes of Legal & General, Rothesay Life, Partnership and Aviva, would not name any DB schemes it is currently in talks with.
But a spokesman for the insurer estimated there was £10bn-worth of bulk annuities business in the pipeline.
The biggest investor in the latest round of capital raising was Reinet Fund, the investment arm of the Rupert Family and the biggest shareholder in the firm, which put in £140m.
The other investor was Chinese investment house Legend Holdings Corporation, which put in £110m.
Other shareholders include RBS, JP Morgan, private equity investor JC Flowers, and Saudi investor Alistithmar.
Last year, PIC took on £2.8bn of liabilities, including the full buy-out of the £2.4bn Philips UK Pension Scheme, which the insurer claimed was the largest full DB buy-out in history. In May this year, it insured Aeon Retirement Plan for £900m.
A spokesperson for PIC told Financial Adviser that the well-publicised challenges facing DB schemes – including member longevity and low interest rates – meant an increasing number of companies were looking to get rid of their schemes.