Pension Risk Transfer Market to Exceed GBP10 Billion in 2009

LONDON - Pension Corporation, a leading provider of risk management solutions to defined benefit pension funds, expects that the trustees and sponsors of defined benefit pension funds will drive the market for pension risk transfer solutions to more than GBP10billion in 2009. This would represent a growth in the market of 25% over the 2008 market, which saw just over GBP8billion of pension insurance transacted.

Pension Corporation’s Pension Risk Transfer Index, launched today, underscores the conviction that this year the primary focus for trustees and sponsors seeking risk transfer solutions will be longevity. Pension Corporation estimates that longevity risk transfer will account for up to 60% of the market by year end. In 2008 the focus was on full pension insurance buyout, or to a lesser extent, pensioner “buy-ins”.

The Pension Risk Transfer Index lays bare the volatility in asset values which, when combined with increasing liabilities, is a significant reason for pension fund trustees and sponsors to look at interim steps to full buyout, such as longevity risk transfer. These interim steps help to bring certainty to pension fund members around the level of their benefits until they can afford full buyout. The strong levels of competition in the longevity insurance market are also a factor in opening up this market.

Edmund Truell at Pension Corporation, commented:

“We are a little over half way through the year and we have seen around GBP4bn of new business written. With several large schemes looking at transacting over the next few months we could well see the market for pension risk transfer exceed GBP10billion. However, the market will look substantially different from last year with pension schemes looking in particular at removing longevity risk.”

Notes to Editors:

About Pension Corporation

Pension Corporation removes pension risks from the trustees and sponsors of defined benefit pension funds. As a market leader it is the counterparty to risks ranging from full pension insurance buyout to longevity risk insurance, sponsor stewardship and asset-liability management. Established in 2006 by the Truell Charitable Foundation, the Group now provides increased levels of security and stability for fund members through Pension Insurance Corporation Ltd (”PIC”), an FSA authorised and regulated insurance company; and Pension Corporation Investments LP Inc. (”PCI”). For further information please visit www.pensioncorporation.com

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 Caroline Parker, +44-20-7269-7295

Source: Pension Corporation

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, Caroline Parker, +44-20-7269-7295