XPS Pensions Group launches service to streamline bulk annuity transactions for smaller pension schemes

XPS Pensions Group launches service to streamline bulk annuity transactions for smaller pension schemes

26 Sep 2022

•    Service offers smaller schemes better access to the bulk annuity market including improved insurer engagement, reduced transaction risk and low-cost fixed fees

XPS Pensions Group (XPS) has launched XPS Xpedite, a service designed for pension schemes with AUM below £100m. The service seeks to streamline buy-in and buyout transactions to help scheme increase insurer engagement, achieve more competitive pricing and terms with insurers and reduce transaction risk.  This is all done under a low-cost fixed fee model allowing smaller schemes to transact more cost effectively.

XPS has worked closely with some of the leading UK insurance providers, who specialise in transactions with smaller schemes, to develop the service. XPS Xpedite features consistent and streamlined processes to ensure that smaller schemes, who represent c80% of the UK market, attract the attention of insurers, even in a busy marketplace.

Leading insurance advisory law firm, DLA Piper LLP, assisted in establishing the service by negotiating pre-agreed contacts with the insurers that offer more favourable terms than those that smaller schemes normally receive. These pre-agreed contracts mean that schemes can move from receiving a quotation to transacting as quickly as 1-2 weeks, much quicker than standard transaction timescales. 

Stephen Purves, Head of Risk Settlement at XPS Pensions Group, said: “The market for buy-in and buyout transactions is as busy as it’s ever been, and smaller schemes can sometimes get crowded out in the market. XPS Xpedite allows us to build on our experience and expertise working with insurers to address this issue and to help smaller schemes get better access to buy-ins and buyouts with more competitive pricing and contractual terms. 

Our new service offers smaller schemes an efficient and predictable route to buyout, cutting their costs and lowering transaction risk. This is more important than ever given recent improvements in funding levels and the increasing number of schemes now in a position to approach the insurance market.”