Bulk annuity market: Q4 trustee update
Bulk annuity market: Q4 trustee update
29 Oct 2024
The market continues to be busy with the number of deals in H1 hitting record highs. Overall premiums were lower than expected as a result of a large number of smaller transactions driving overall market activity. As anticipated, H2 is bringing the larger volume transactions, with the XPS-led £1.5bn Michelin Pension and Life Assurance Plan being the largest transaction announced so far this year.
We have also seen continued activity in the smaller end of the market with the ongoing development of streamlined solutions and some of the newer entrants also breaking into this space.
Market commentary
- The insurers continue to be busy, with lots of demand in the market.
- Full H1 2024 numbers have now been released which shows that whilst overall premiums written were lower than expected, the actual number of transactions (c.130) was higher than previous years. This is a result of a large number of smaller transactions driving overall market activity.
- H2 2024 has continued the trend of previous years with larger deals transacting, including the XPS-led £1.5bn transaction for the Michelin Pension and Life Assurance Plan, the largest publicly announced transaction in the market at the time of writing.
Notable deals in the last quarter in the public domain included:
| Michelin Pension and Life Assurance Plan | £1.5bn | Aviva |
| Coats UK Pension Scheme | £1.3bn | PIC |
| SCA UK Pension Plan | £1.1bn | L&G |