Browsing: Pension Risk Transfer

The insurance market has responded to meet the growing demand for de-risking solutions for defined benefit pension funds with both innovation and new participants – and further developments are anticipated.

The UK defined benefit pensions de-risking market is likely to see £50bn in bulk annuity transactions and £20bn in longevity swaps in 2025, according to WTW’s annual De-risking Report.

£53m deal is Royal London’s latest since entering BPA market last year.

The estimated retiree pension risk transfer cost is now 101.4% of a plan’s accumulated benefit obligation.

The buy-in covers the pension benefits of 95 pensioners and dependents, and 74 deferred scheme members and is worth £24m.

The UK’s bulk purchase annuity market is now firmly established as a £50bn a year market.

When all is said and done, 2024 could end up delivering aggregate premium at or close to the US pension risk transfer market’s current banner year of 2022, where $51.9bn worth of deals was written in the space.

Letter to insurance company CEOs references ongoing monitoring of funded reinsurance.

The firm has built a team of more than 20 people focussed on bulk purchase annuity transactions and completed two deals with external pension schemes in Q4 last year.

The latest buy-in secures the pensions of almost 5,000 pensioners and dependants and over 3,000 deferred policyholders.