Investment - Articles - PRAs LIST demonstrates resilient bulk annuities market

 The core scenario tested a sequence of market stresses, with the exploratory scenarios not disclosed at an individual level. The results show that all participating insurers remain well-capitalised following the core stress scenario.

 

“Direct comparison between insurers is challenging, as outcomes vary by business mix and asset strategy. The PRA also constrained the recognition of certain management actions including potential support from wider groups (where applicable). As risk transfer volumes grow, schemes are rightly prioritising long-term service quality and member experience alongside execution. Transparency from firm-level core results is a step forward and publishing exploratory outcomes in future would aid understanding. Trustees should use today’s data to ask more questions on risk and keep member outcomes front and centre.

 

“The individual results, as per the aggregate results, demonstrate a resilient bulk annuity market that should give comfort to Trustees looking to enter into, or already holding, a bulk annuity contract. Trustees should also take comfort from the fact that the PRA is regularly stress testing insurers and from the resilience of the sector shown by the results of LIST 2025. We welcome the transparency now offered as a result of the tests, but note there are many limitations, which the PRA have acknowledged. Optimising the process over time to allow greater comparison would be welcome, as would the publication of results of the exploratory scenarios at an individual level.”