Pension Corporation: Preliminary Results

Pension Corporation Announces 2009 Preliminary Results

LONDON, February 4 - Pension Corporation ("PC"), a leading provider of risk
management solutions to defined benefit pension funds, is pleased to announce
excellent preliminary results for the 12 month period ended 31 December 2009,
despite the difficult financial and economic environment. Significant strides
have been made in establishing the company as a trusted risk manager, helping
pension fund trustees and sponsors to remove risk to the benefit of members.

2009 Pension Insurance Corporation Highlights

    - Attains leadership of the bulk pension insurance market -
      new pension insurance business of GBP1.1 billion transacted
    - Embedded Value of GBP618 million as at 31 December 2009 - up
      50% over the year
    - Embedded Value earnings in the year ended 31 December 2009
      of GBP202 million
    - Strong and conservatively managed balance sheet with PIC's
      regulatory capital ratio standing at 178% of the required minimum
    - GBP3.3 billion in assets under management and around 45,000
      pension fund members insured

Sir Mark Weinberg, Group Chairman commented: "I am delighted
that 2009 was a very successful year for the business. Pension Insurance
Corporation was able to win some very significant transactions when faced
with strong competition from the legacy players. I believe that pension fund
trustees are coming to see us as the market leader and the value of this
cannot be underestimated.

"Our ability to tailor transactions to meet trustee and
corporate needs has enabled us to increase our market share to in excess of
25% (estimated).

"We expect to see the market continue to grow with up to GBP20
billion of pension risk transferred during the current year. There may also
be opportunities for Pension Corporation's growth arising out of market
consolidation or the sale of annuity books by other insurers."

During 2009, PIC wrote a total of eight transactions and has
now completed 17 in total. These included the buyout of Food from Britain,
which was the first insurance transaction for a public sector backed pension
scheme.

Leyland DAF was also significant as PIC is working with the
trustees to assess the level of surplus and consider how best it can be used
by the scheme members, including the amount of any benefit improvements.

During the latter half of the year, PIC worked with FTSE 100
companies including Cadbury and Liberty, several multi-national companies
including Denso, and private equity owned companies, such as Warwick, to
manage pensions related issues.

Pension Corporation Investments

Despite the challenging economic environment, our two
operational businesses, telent and Quadriga, continued to perform well and
are taking market share. telent is the former GEC Marconi and Quadriga is
Europe's largest hotel entertainment supplier. The companies made a combined
EBITDA of GBP62 million in the year to March 2009, a strong operational
performance. telent recently announced it was part of a consortium winning a
GBP1.4 billion contract to manage BT's Openreach network. Quadriga launched a
major new product for its hotel customers, Sensiq - the most powerful guest
communications portal available - which we believe will lead to increased
market share.

Thought Leadership Programme

Pension Corporation's Thought Leadership programme, which is
committed to facilitating a debate around both public and private sector
pensions, published a number of white papers focussing on the impact of the
economic crisis on the pensions landscape.

    1) The year end solvency ratio is the amount of Available Capital
       Resources above the Required Capital
    2) The figures provided are preliminary and are to be audited

About Pension Corporation

Pension Corporation is a leading provider of risk management solutions to
the trustees and sponsors of defined benefit pension funds. It oversees
pension fund liabilities of c.GBP6 billion and is affiliated to more than
100,000 pension scheme members or former members. Its FSA authorised and
regulated insurance company, Pension Insurance Corporation ("PIC"), brings
safety and security to scheme members' benefits through innovative, tailored
solutions. These include pension insurance buyout or buy-in and longevity
risk management. It has transacted both the UK's largest and the first public
sector backed pension insurance buyouts. Other clients include FTSE 100
companies and several multinationals. PIC is proud to work with pension fund
trustees to maximise member benefits. For further information please visit
www.pensioncorporation.com

    Notes to Editors:

    For further information please contact:

    Pension Corporation    Jeremy Apfel      +44-20-7105-2140

    Financial Dynamics     Rob Bailhache     +44-20-7269-7200
                           Nick Henderson    +44-20-7269-7114

For further information please contact: Pension Corporation: Jeremy Apfel, +44-20-7105-2140. Financial Dynamics: Rob Bailhache, +44-20-7269-7200; Nick Henderson, +44-20-7269-7114.