Market movements in the first quarter of the year have had a mixed effect on the bulk annuity market and pushed up the cost of buy-ins and buyouts, says Towers Watson.
Insurers expect to write more than £6bn of buyout and buy-in business in 2013 after a strong finish to 2012 saw £1.5bn in transactions, says JLT Employee Benefits.
An increase in gilt yields in 2013 could push up the price of buy-ins but improve the affordability of full buyouts, says Pension Corporation.
Rothesay Life co-head of business development Guy Freeman examines the role annuities can play in a portfolio.
JLT Pension Capital Strategies head of buyouts Martyn Phillips looks at how medically underwritten bulk annuity deals could cut the cost of de-risking.
More than a dozen schemes are undertaking medically underwritten buy-ins with Partnership, after the first two ‘enhanced' buy-ins were completed by the insurer last year.
Total bulk annuity business in by the end of 2012 was £4.4bn, compared to £5.2bn in 2011, Aon Hewitt research shows.
The Chamber of Shipping Retirement Benefits Plan has completed its second buy-in this year, paving the way for a full buyout of the scheme.
Pension Insurance Corporation saw a surge in profits last year after writing £1.5bn in new business.
The longevity swap market appeared to dry up in 2012, as new business dropped by more than two-thirds, according to data from Legal and General.