UK - Aon consulting has questioned the capacity of the market to handle high levels of demand for buyout of defined benefit (DB) pension schemes, after it conducted a study revealing an 80% surge in buyout activity in the second quarter.
Paul Belok, principal & actuary, Aon Consulting, said: "Interestingly, whilst the volumes transacting are historically high, we have seen the first casualty in the battle for market share, with Synesis pulling out of the fray. (www.globalpensions.com, 17 July 2008)
"On the other hand, Swiss Re is a new entrant and there may be more to come. We certainly expect to see continuing jockeying for position and inevitably some rationalisation of the participants in the market in due course."
Belok added the amount of activity in the market raised serious questions over capacity of providers.
He said: "In the past quarter, high demand has caused considerable stress at a number of the insurers as they seek to cope with demand.
"This has had an impact on the speed at which quotations can be turned around and indeed insurers are becoming more selective in what schemes to work with."
Aon said a side effect was there was now less competition than previously seen in relation to cases below about £20m (US$39.1m) as more providers focused on larger schemes.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.