Bulk annuity volumes expected to increase
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The first half of 2026 saw more than 135 pension risk transfers worth a combined £10.2bn, according to Hymans Robertson, which expects transacted volumes to increase in the remainder of 2026.
A high proportion of the transactions in the first half of this year were completed by small pension schemes, with less than £100m in assets. The transaction volume in H1 is up from £9.8bn during the same period in 2025 but lower compared with previous years.
The consultancy said insurer pricing is "particularly attractive" right now, with strong insurer competition driving innovation. The post-transaction experience has moved into focus, as has market efficiency for smaller schemes.
While price clearly remains a consideration, head of risk transfer Lara Desay said trustees are putting greater weight on non-price factors.
“When selecting an insurer, the smallest differences are having the strongest sway and Trustees continue to place greater focus on non-price considerations," she said.
“As in previous years, member experience is a key consideration for trustees, and this must be a focal point for both innovation and service delivery for insurers. Members must be supported through their journey with realistic expectations and service-led approaches," Desay added.
While volumes remain relatively modest so far, Hymans expects volumes to pick up in H2 as activity in the bulk annuity market is currently high.
“Looking ahead, we expect the second half of 2026 to exceed the first half in terms of number of transactions and volumes completed. Several large transactions have already completed since 30 June, and the pipeline is strong," said Desay.
"The market is evolving quickly, and schemes that engage early and prepare thoroughly will be best placed to secure successful deals in an increasingly competitive environment," she advised.
Activity in the UK pension risk transfer market has pulled in global capital in the past few months, helping to keep the landscape competitive. Pension Insurance Corporation has been bought by Athora, while Brookfield Wealth Solutions has snapped up Just. Legal & General has partnered with Blackstone for asset sourcing, and Standard Life has teamed up with a consortium of investors led by CVC Capital Partners and Prudential Financial.
