Pension Insurance Corporation (PIC) is on the verge of welcoming a new shareholder after CVC Capital Partners agreed to buy an undisclosed stake in the specialist insurer.
The private equity firm is buying shares in the bulk annuity provider from a group of investors, and is subject to approval by the regulator.
PIC insures the defined benefit (DB) pension scheme liabilities of 130,000 people and has more than £20bn of assets under management.
The deal is being paid for by CVC’s Strategic Opportunities Platform, which was established to invest in long-term businesses.
CVC partner and global co-head of financial services Peter Rutland said the firm is buying a stake in PIC due to its 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,” he added. “PIC has already demonstrated its industry-leading ability to respond to this trend, providing its customers with long-term stability and financial security.”
PIC chief executive Tracy Blackwell described the agreement as a 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,” she added.
