PensionBee Group plc
Incorporated in England and
Wales
Registration Number:
13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
The
information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
'UK MAR') which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
4
March 2024
PensionBee Group
plc
Announcement of Proposed US
Expansion
PensionBee Group plc ('PensionBee' or
the 'Company'), a leading online pension provider, today announces
it has entered into an exclusive, non-binding term sheet with a
large, US-based global financial institution in order to expand
into the United States of America ('US'). The US has the world's
largest Defined Contribution pension market, representing
approximately 80% of the global total and $22.5 trillion in
assets.1
Under the proposed strategic
relationship, PensionBee will deliver the US service through
PensionBee Inc, to be established in Delaware as a wholly-owned
subsidiary of PensionBee Group plc, with operational headquarters
in New York.
PensionBee will manage the operations
of the US business, including the hiring of a local team, making
available its award-winning online retirement proposition and
UK-based proprietary technology to consumers in the US Defined
Contribution market. PensionBee will enable US consumers to easily
consolidate and roll over their 401(k) plans into a new Individual
Retirement Account ('IRA').2
The US-based partner will provide its
expertise and substantial marketing funding. Correspondingly,
PensionBee's financial contribution will be financed from the
existing resources of PensionBee Group plc.
Entry into a final binding agreement
between the parties is subject to confirmatory due diligence, legal
documentation and regulatory approvals, with launch expected in
late 2024.
In the UK, following close to a decade
of operations, PensionBee will continue to grow its market share in
the £1 trillion Defined Contribution pension market in accordance
with current guidance on revenue growth and profitability,
operating the UK business as financially separate to the US
undertaking. As at the end of 2023, PensionBee had £4.4 billion of
Assets Under Administration on behalf of approximately one quarter
of a million Invested Customers.3 PensionBee achieved
ongoing Adjusted EBITDA profitability at the end of 2023 and
expects to be profitable in the UK on an Adjusted EBITDA basis for
the full 2024 financial year.4
Given the context of the enormous US
market opportunity, PensionBee sees the potential for its US
business to grow rapidly, becoming at least the size of its UK
business over the next decade.
Romi
Savova, CEO of PensionBee, commented:
"In
the year of our 10th anniversary, having demonstrated underlying
profitability, we have entered discussions with a view to deploying
our award-winning customer proposition, supported by our innovative
technology platform and marketing approach, in the United States of
America. This is a transformative step for PensionBee and for our
stakeholders.
By
entering the world's largest Defined Contribution pension market,
where many consumers still struggle to prepare adequately for
retirement amidst an array of confusing and difficult to use
investment options, our straightforward approach to online
retirement savings will help millions of consumers look forward to
a happy retirement."
Notes:
1. Investment Company
Institute, "Release: Quarterly Retirement Market Data" as at 13
December, 2023. Includes the sum of Defined Contribution Plans and
IRAs.
2. A 401k is an
employer-sponsored Defined Contribution retirement plan into which
employees can contribute and into which employers may also make
matching contributions. An individual retirement account ('IRA') is
a tax-advantaged retirement savings account into which an
individual can contribute either pre- or post-tax money and which
grows on either a tax-deferred or tax-free basis.
3. Assets under
Administration means the total invested value of pension assets
within PensionBee Invested Customers' pensions. It measures the new
inflows less the outflows and records a change in the market value
of the assets. Invested Customers means those customers who have
transferred pension assets or made contributions into one of
PensionBee's investment plans.
4. Adjusted EBITDA is the
profit or loss for the period before taxation, finance costs,
depreciation, share based compensation and transaction
costs.
Contacts
PensionBee
Becky O'Connor (+44) 7967
613925
Laura Dunn-Sims
press@pensionbee.com
020 3557 8444
About
PensionBee
PensionBee is a leading online pension
provider, making pension management easy for its customers while
they save for a happy retirement. PensionBee helps its customers
combine their old pension pots, make flexible contributions, invest
in line with their goals and values and make withdrawals from the
age of 55 (increasing to 57 in 2028). PensionBee offers a range of
investment plans, including fossil fuel free and impact investing
options, from some of the world's largest asset
managers.
Operating in the £1 trillion market of
Defined Contribution pension assets, PensionBee has grown rapidly
through its direct-to-consumer marketing activities, creating a
household brand name for the mass market. The Company has £4.4
billion in Assets Under Administration and 229,000 Invested
Customers as at 31 December 2023. PensionBee has consistently
maintained a Customer Retention Rate in excess of 95% and an
Excellent Trustpilot rating from more than 10,000 customers,
reflecting its commitment to outstanding customer
service.
PensionBee is admitted to trading on
the Premium Segment of the London Stock Exchange's Main Market
(LON:PBEE).