Pension Corporation claims buyouts will top £10bn in 2008

In a speech at The Actuarial Profession’s Finance, Investment and Risk Management Convention held in Manchester yesterday, the buyout firm said buyouts had reached a value of £4.1bn in the six months to March 31.

And Pension Corporation director Steven Lowe predicted that transfers would top £10bn in 2008.

Lowe attributed the increase in the number of bulk annuity transfers to proposed regulatory and legislative changes, increased competition between insurers, investment market volatility and pressure on the time of senior management of companies.

He said: "Most chief executive officers and chief financial officers want to focus on their main area of business. It is in their interest to do something to ensure the security of their pension funds and many are deciding to give it to investment professionals to run."

Lowe said the increase in buyouts was positive – providing a less risky option for pension members.

He said: "As much as people might want to trust their employers who they might have worked with for 30 years, realistically, they benefit from reduced risk in a buyout by an FSA authorised and regulated financial institution."