Pensions - Articles - Private sector DB insurance assets surge on buy in boom

 The value of private sector DBH pension scheme insurance policies assets was £172 billion as of 31 March 2025, representing the highest value in the data time series (which started on 30 September 2019) with insurance policy assets increasing by £53 billion since 30 September 2023.

 It indicates that pension schemes and insurance companies continued the trend of agreeing buy-ins and longevity swap contracts. The figures can be volatile as, for example, a pension scheme with insurance policies assets through a buy-in may move towards buy-out, where these insurance policies assets would go to zero as these assets would be transferred to the insurance company.

 Mark Channon, Actuarial Director at Broadstone, commented: “These figures from the ONS clearly quantify the vibrant insurance de-risking market with significant volumes of buy-ins and longevity swaps being agreed over the past few years thanks to the significantly improved funding position of many defined benefit pension schemes. The statistics also demonstrate the timeline that many Trustees look to follow. First, they look to de-risk the scheme by agreeing a buy-in which then acts as a pathway to a later buy out and the eventual wind up of the scheme.

 “Given funding improvements have occurred only recently, it explains the current surge in insurance policy assets held by pension schemes – as more of these schemes progress to buy out we could see this trend reverse. However, this is likely to take time. The pipeline for defined benefit pension schemes looking to secure a buy-in and take the first step on their de-risking journey remains extremely healthy and strong volumes look likely for many years yet.”

 The Financial Survey of pension Schemes