Investment vehicle Reinet grew its net asset value by 8.1%, reflecting the increase in value of its investment in Pension Insurance Corporation.
Reinet’s net asset value amounted to €6.2bn at the end of March, an increase of €464m, or 8.1%, from end-March 2023, it said in a statement on Tuesday.
Apart from the increase in the value of Pension Insurance Corporation, the group received “significant dividends” from both Pension Insurance Corporation and British American Tobacco.
This was offset primarily by a decrease in the share price of BAT, which fell from £28.41 at end-March 2023 to £24.06 as of March 31 2024. The strengthening of sterling against the euro in the year also contributed to the positive results, it said.
Reinet’s net asset value per share rose to €34.02 for the year ended March from €31.46 a year ago.
During the period it received €130m in dividends from BAT and the inaugural dividend of €57m from Pension Insurance Corporation Group.
Pension Insurance Corporation’s adjusted own funds increased from £5.9bn to £6.3bn over the last year with new business premiums increasing from £4.1bn to £6.9bn mainly due to the conclusion of the largest ever UK bulk annuity transaction in respect of a buy-in with the trustees of two schemes sponsored by RSA Group, Reinet said.
The board of Pension Insurance Corporation proposed an inaugural dividend of 7.5p per share which was paid to shareholders in May 2023. Reinet’s share of this dividend amounted to some £50m. In April 2024, shareholders approved a second dividend of 11p per share, which was paid to shareholders in May 2024. Reinet’s share of this second dividend amounted to £73m.
The group said that during the year, interest rates and inflation started to decline in some major economies with available liquidity from the private and banking sectors for capital investments showing early signs of improvement.
Capital invested during the year amounted to €128m, which was mostly in respect of funds managed by Trilantic Capital Partners, TruArc Partners and Coatue. Reinet had cash resources of about €357m and access to additional funds by way of additional borrowing facilities to meet investment obligations and other opportunities as they arise, it said.
The board proposed a dividend of €0.35 per share, reflecting a 16.67% increase on the previous year’s dividend.
Chair Johann Rupert said the group would continue to seek new investment opportunities and partnerships that fulfil its objective of providing long-term capital growth and support its existing portfolio companies, to be successful against the global backdrop of the ongoing Ukraine crisis, increasing unrest in the Middle East, heightened global geopolitical tensions, continuing elevated interest rates and stubborn inflation.
“As with all conscientious investors we will need to generate returns for our shareholders from sustainable business practices and try to mitigate the ever-increasing risks posed by global warming,” he said.
The introduction of the corporate sustainability reporting directive in the EU will bring enhanced sustainability reporting requirements over the next few years.
He said investors and businesses would need to focus more resources on reducing their impact on the environment while promoting investment in sustainable business practices. Reinet’s two largest investments, Pension Insurance Corporation and BAT, already have well developed strategies in this regard, he said.
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