PIC’s operating profit rises to £533m; investment in private debt grows

Written by Adam Cadle

11/03/2022

PIC’s operating profit rose to £533m in 2021, up from £349m in FY2020, with larger values invested in privately sourced debt.

The insurer said £2.3bn was invested in privately sourced debt in 2021 in areas such as social housing, renewable energy and not-for-profits (2020: £1.8bn). Its portfolio of financial investments increased to £51.1bn compared to £49.6bn in the same period.

Figures also showed that ESG investments of £10.9bn were recorded, up from £10.1bn. A Solvency II ratio of 168% was recorded in 2021 compared to 157% in 2020.

In May 2021, PIC was re-affirmed an Insurer Financial Strength credit rating of A+ by Fitch Ukraine. PIC has been carefully managing the portfolio over recent years with increased investment into more secure assets. During 2021, it continued this strategy, focusing on consolidating its investments into assets that protect against market volatility. The insurer said, therefore, that it has “extremely limited direct exposure to the region, with a legacy asset of circa £3m held in shareholder funds”.

It added: “We are confident in the resilience of our portfolio and the situation remains under careful review.”

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