Over £25bn of bulk annuity deals completed in the UK in 2022

More than £25bn of bulk annuity transactions were completed between pension schemes and insurers in 2022, according to Legal & General (L&G).

L&G Group’s Global Pension Risk Transfer (PRT) business, L&G Retirement Institutional (LGRI) and L&G Retirement America (LGRA), has released its latest edition of the Global PRT Monitor, which analyses industry trends and market outlooks in the UK and US.

Around £12bn of the more than £25bn of deals in the UK were secured in the first half in the year.

L&G noted that a surge in the second half of the year translated to another strong performance.

Overall, five transactions of more than £1bn were announced during the year.

The monitor found that improved pension scheme funding levels had greatly accelerated the journey to buyout for many pension schemes, with some market participants projecting that demand for buy-ins and buyouts could total £200bn over the next few years.

In the US, an estimated US $53bn of bulk annuity deals were completed, exceeding the 2021 record of US $38bn.

Commenting on the findings, LGRI head of UK pension risk transfer, John Towner, said: “Increasing numbers of UK pension schemes are looking to insurance to provide security to their members.

“Our market has continued to deliver for pension schemes in all varieties of environments. We are excited for what we expect will be a busy few years ahead.”

LGRA VP head of distribution, Sheena McEwan, added: “We saw yet another record-breaking year in the US PRT market, signalling the growing strength and resiliency of the market.

“As the market has evolved, we’ve seen volumes continue to rise and more transactions being announced publicly – which is helping to broaden knowledge and understanding of PRT as a key risk mitigation strategy for US insurers.

“Momentum from 2022 has carried over into 2023 and we are anticipating another busy H1 with several transactions over US $1bn already in the pipeline.”


This article first appeared on our sister title, Pensions Age.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.