Pension Insurance Corporation (PIC) concluded £5.6bn on bulk annuities in 2020 after recording just over £2.1bn in the second half of the year.
Around £1trn of pension risk could be insured by just over a decade’s time as bulk annuity volumes grow rapidly, also boosting insurers’ rankings in the FTSE 100, according to Hymans Robertson.
Fewer pension schemes are targeting self-sufficiency as their long-term objective while bulk annuity pricing improves and the consolidation market opens up.
The coronavirus pandemic is unlikely to curb pension scheme enthusiasm for buy-ins and buyouts, says Hymans Robertson.
A significant increase in so-called ‘mega-transactions’ accounted for around two-thirds of the record-breaking bulk-annuity transfer volumes for 2019, Hymans Robertson analysis reveals.
Zurich has agreed to insure £800m of longevity risk for the pensioners of a FTSE 100-sponsored pension scheme.
Pensions and risk consultancy Hymans Robertson has appointed two equity partners and five partners from across the firm.
The pension insurance market could be set for another record-breaking next year as schemes are already "in the queue" for deals at the start of next year, says Hymans Robertson.
Jonathan Stapleton asks how the combination of improved scheme funding and better insurer pricing could drive a resurgence in the take-up of full insurance buyouts.
The Airways Pension Scheme's £4.4bn buy-in with Legal & General, announced this morning, is set to mark a 'fundamental shift' in market dynamics with deal volumes of £20bn-plus for 2018 now looking possible, consultants say.