Investment - Articles - Focus on fundamentals is key as bulk annuity market evolves

"This reflects a broader trend across the bulk annuity market, which continues to evolve with strong demand, competitive pricing and robust insurer appetite, but also with scale, ownership and capital strategy becoming more prominent alongside pricing. These transactions do not change the market overnight, but they do point to a clear direction of travel.”

Chesner added: “While individual transactions can attract attention, they sit within this broader trend. For trustees, the key is maintaining a clear focus on the fundamentals that underpin good outcomes, particularly as pricing conditions may be as competitive as they are likely to be in the near term. This means continuing to focus on insurer financial strength and capital backing, understanding the wider group and its long-term ownership model, and ensuring transaction processes are well prepared and properly test the market.”

Yona Chesner concluded: “Buy-in and buy-out transactions remain among the most significant financial decisions trustees will make.  In what remains a competitive but increasingly complex market, strong preparation, clear governance and a thorough assessment of insurers continue to be critical for trustees.”