380 risk transfer transactions in 2025, a 25% increase from 2024 (which was the previous record year).
Buy-ins now total over £370bn and longevity swaps total around £170bn.
Over half of this activity has happened in just the last five years, showing the rapid growth in the risk transfer market since it started 19 years ago.
Hymans Robertson expects £1trillion of pension scheme liabilities will have been insured by 2035.
Market strength set to continue with appetite from insurers growing across all pension scheme sizes.
UK buy-in market enters a new era of growth supported by global asset managers.
DB pension schemes gain more endgame choice with superfunds and bespoke arrangements expanding.
The risk transfer market has leapt past an extraordinary milestone with over £500bn of transactions completed since 2007 according to analysis by Hymans Robertson as it launches its annual risk transfer report. This marks a period of unprecedented momentum and setting the stage for another strong year ahead according to the leading pensions and financial services consultancy.
Commenting on the findings from the latest risk transfer report, James Mullins, Partner and Risk Transfer Specialist, Hymans Robertson, says: “Pension scheme risk transfer has reached a historic milestone with over £500bn of transactions completed in under two decades, and with half of the volume completed in just the last five years. It’s a clear sign of how attractive and resilient the market has become and it shows the scale of confidence that pension scheme trustees and sponsoring employers place in this endgame. We’re seeing record levels of activity from pension schemes of every size and the momentum is only growing as more capital, and investment supply, comes into the UK market from global asset managers.
“DB pension schemes now have more options than ever before. The superfund market is now firmly proven as Clara continues to demonstrate its value as a credible and trusted solution and with the entrance of TPT’s new superfund. We’ve also seen innovation with bespoke alternatives emerging, like the Stagecoach and Aberdeen arrangement, that show how creative and flexible endgame planning has become.
“Given the large recent and projected future volumes, the UK buy-in market is attracting global attention. With PIC’s acquisition by Athora (owned by Apollo) and Just’s acquisition by Brookfield, we’re seeing large international asset managers committing significant capital to the UK buy-in market. These transactions signal growing international interest in UK pension risk transfer and are expected to drive fresh capacity and sustained appetite in the years ahead. That kind of backing increases insurer capacity and broadens the investment universe, opening up new opportunities for insurers to source assets and ultimately helping to support competitive pricing for pension schemes.”
|
