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Reinet Investment In Pension Corporation
Reinet Investments S.C.A. Depositary Receipts
issued by Reinet Securities SA
(Incorporated in Switzerland)
ISIN: CH0045793657
Depositary Receipt Code: REI
COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE
Luxembourg, 22nd October 2012
REINET INVESTMENT IN PENSION CORPORATION
On 4 July 2012, Reinet Investments S.C.A. announced that its subsidiary, Reinet Fund S.C.A. F.I.S. ("Reinet ") had agreed to enter into definitive agreements with Pension Insurance Corporation Holdings LLP and associated entities (together "Pension Corporation") to invest up to 400 million GBP in the pension insurance business of Pension Corporation. The agreements were subject to certain conditions, including the approval of Pension Corporation investors and the consent of the Financial Services Authority and of the Guernsey Financial Services Commission.
Reinet Investments S.C.A. is pleased to announce that the agreements between Reinet and Pension Corporation have now become unconditional in every respect. The transaction was completed today with Reinet subscribing for an initial 16% ordinary shareholding in Pension Corporation Group Limited (PCGL), the newly established group holding company, for a consideration of 100 million GBP less transaction expenses. Reinet Fund is committed to contribute a further 300 million GBP in one or several tranches to finance new business over the next five years. Reinets shareholding in PCGL carries at all times voting rights commensurate with its ultimate 43% shareholding.
The other main PCGL shareholders' include JC Flowers, Swiss Re, JP Morgan, RBS, Istithmar World and Lloyds Banking Group. Upon completion of this transaction, the Boards of PCGL and of Pension Insurance Corporation have been reconstituted with the appointment of Reinet and JC Flowers representatives and otherwise to reflect the shareholders interests. Further details are available in the attached press release issued by Pension Insurance Corporation (Appendix A).
Commenting on the transaction, Mr. Johann P. Rupert, Chairman of Reinet Investment Manager S.A., said:
"Since its inception, Reinet has been looking for investment opportunities in line with its wealth protection objectives. We have long viewed the market for risk management solutions to the pension fund industry as a source of such opportunities. Reinets investment in Pension Corporations insurance businesses very much reflects this view.
Over the last four years, Pension Insurance Corporation has emerged as a leader in the growing market for insuring the UKs legacy defined benefit pension liabilities. Its Board and management team have decades of experience and success in pensions and insurance. We look forward to working with them as long-term investors.
Notes for Editors
About Reinet
The investment objective of Reinet is to achieve long-term capital growth. Reinets strategy is to work with experienced partners to invest in unique opportunities focusing on value creation for investors.
Reinet Investments S.C.A. is a securitization vehicle through which its shareholders participate indirectly in the portfolio of assets held by its wholly-owned subsidiary Reinet Fund S.C.A. F.I.S., a specialized investment fund incorporated in Luxembourg. Reinet Investments S.C.A. shares are listed on the Luxembourg Stock Exchange, its primary listing, and Reinet Investments South African Depository Receipts are listed in Johannesburg, its secondary listing.
At 30 September 2012, the net asset value of Reinet Fund S.C.A. F.I.S. was 3 943.8 million EUR.
About Pension Corporation
Pension Corporation is a leading provider of risk management solutions to the trustees and sponsors of defined benefit pension funds. Its FSA-authorised and regulated insurance company, Pension Insurance Corporation ("PIC"), brings safety and security to scheme members' benefits through innovative, tailored solutions factored around pension insurance buyouts and pension insurance buy-ins. PIC has over 6bn GBP in assets and has insured more than 60,000 pension fund members. Clients include FTSE 100 companies, multinationals and the public sector. PIC concluded the first UK public sector backed pension insurance buyout and the first buyout over 1billion GBP. PIC is proud to work with pension fund trustees to maximise member benefits. For further information please visit www.pensioncorporation.com
Appendix A
PENSION CORPORATION GROUP COMPLETES 400 MILLION GBP FUNDRAISING
- Pension Insurance Corporation restructures Board
London, 22 October 2012 Further to its announcement of 4 July 2012, Pension Insurance Corporation (PIC), a specialist provider of insurance solutions for defined benefit pension funds, today announces the completion of the transaction whereby Reinet Fund S.C.A. F.I.S. (Reinet), a specialised investment fund incorporated in Luxembourg, will invest up to 400 million GBP of new ordinary capital in PICs parent company, Pension Corporation Group Limited (PCGL).
As a result, Pension Insurance Corporation announces the appointment to its Board of Bill Winters, the founder of Renshaw Bay and former Co-Chief Executive Officer of JP Morgan Investment Bank; Harriet Maunsell, formerly a senior partner at Lovells, now Hogan Lovells, and Chairman of the Occupational Pensions Regulatory Authority (Opra); Chris McKechnie, Managing Director for Principal Investments at Swiss Re; and Eloy Michotte, Director of Reinet Fund Manager SA.
The 400 million GBP investment will be used to back Pension Insurance Corporations growth in the expanding market for pension insurance buyouts and buy-ins, required by the trustees and sponsors of defined benefit pension funds in the UK to end their exposure to pension fund risk and fully secure members benefits. Pension Insurance Corporation has concluded more than 1.1 billion GBP of new business in 2012, including with Gartmore, Aon Minet and Cookson Group plc.
Sir Martin Jacomb and Bob Scott are both retiring from the Board, whilst Graham Cooper will remain with the company, focussing his efforts on developing our longevity reinsurance capabilities. Edmund Truell has taken this natural moment in the evolution of the business to step back and concentrate on other projects.
Sir Mark Weinberg, Chairman of Pension Insurance Corporation, said:
I am delighted to welcome Reinet, our newest, principal shareholder and look forward to working closely with them. Also, to warmly welcome our new Board members who together bring a wealth of experience and talent which will be vital in helping guide the company during the next phase of its development. I want to thank sincerely our departing Board members who have each contributed so much over the past six years.
It is a rare business which is able to raise this amount of money in the current market conditions. This investment represents a significant vote of confidence in Pension Insurance Corporations management team and its focus on putting the customer at the heart of everything that we do.
- Ends -
22 OCTOBER 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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