File picture: Philimon Bulawayo
File picture: Philimon Bulawayo

Reinet still deciding whether to take part in UK insurer's pension plan

By Sandile Mchunu Time of article published Jan 29, 2020

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DURBAN -  Reinet Investments said yesterday that it still had to decide whether to take part in the plan by UK insurer Pension Insurance Corporation Group (PICG) to raise up to £750million (R14.24billion) as it seeks to support growth after a profitable 2019.

The insurer is Reinet’s second biggest shareholding at accounting for 34.2percent of its portfolio after British American Tobacco (48.6percent of its portfolio).

In Reinet’s third quarter to end December update released last week, it said its investment in PICG was now valued at 2bn (R32.04bn), up from 1.6bn compared to September.

Reinet said yesterday that it had not yet decided whether it would take part in the capital raise.

“Reinet Investments will make a further public announcement once the board of Reinet Fund Manager SA has considered the capital raise and, if thought fit, approved the extent of its participation in the capital raise,” Reinet said.

The group said the announcement would be made on or about February 17 following confirmation from PICG regarding the allocation of new capital to subscribing shareholders.

PICG chief executive Tracy Blackwell said the UK market had significant opportunities for growth.

“There remains a significant opportunity in the UK's pension risk transfer market and this capital raise will position PICG well to help trustees de-risk pension liabilities,” Blackwell said.

PICG reported that it had an outstanding year in 2019, exceeding its previous new business record with £7.2bn of new business concluded (surpassing £7.1bn reported in 2018) for clients including British American Tobacco, Marks & Spencer and Somerfield.

Blackwell added that 2019 was a year of rapid, profitable growth for the company.

“In the past two years our financial investments have grown by 60 percent, policyholder numbers by 35percent, employee numbers by 50percent and we have invested more than £4bn in areas such as social housing, renewable energy and university education,” he said.

Reinet shares closed 1.67percent higher at R310 on the JSE yesterday.


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