Pensions - Articles - Risk Transfer volumes to reach over 8bn in 1st half 2021


Total pension scheme buy-in and buy-out volumes over the first half of 2021 are expected to reach over £8bn, according to new analysis by Hymans Robertson. As these are lower volumes than insurers would have expected, there should still be opportunities for well-prepared schemes to gain competitively priced buy-in quotations over the next few months says the leading pensions and financial services consultancy.

 The estimated volume of over £8bn includes £7.7bn of confirmed transactions over the first half of the year.

 James Mullins, Head of Risk Transfer at Hymans Robertson, comments: “With just £7.7bn of confirmed buy-ins and buy-outs so far in the first half of this year, the market has been quieter than anticipated. The slow start was partly due to the fact that the end of 2020 was so busy and a quieter period has followed. It’s not a reflection of lockdown or a sign of reduced appetite.

 “Despite the slow start, insurers still have business targets to aim for and the market has become extremely busy in recent weeks. As a result, the expectation is that the market will still reach over £25bn this year. We could well be in for a repeat of 2018, where the business written over the second half of the year more than doubles the business written over the first half of the year.

 “Hymans Robertson’s risk transfer team has led the advice on over £2bn of buy-ins so far during 2021 and we’ve seen a further increase in demand from schemes and expect this to continue for the rest of the year. There’s no doubt that the second half of 2021 will be a busy period.”
  

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