Insight
Title:
The bulk annuity market is booming, for now
Description:
There are now nine active insurers in the UK bulk annuity market.
All bulk annuity insurers in the UK offer full-scheme transactions.
Market Dimensions (from Aon Report)
- 85% of these insurers are committed to increasing transaction volumes over the next 5 years.
- ~1.5m lives covered.
- ~£220bn total value to mid-2023
- £28bn deals in 2022
- £21bn deals in H1 2023 (expect to rise to ~£50bn by year-end)
In July 2023, WTW reported that UK private sector DB Schemes held around £1.5trn in assets and that they are better funded than ever.
What is the half-life of the remaining DB Schemes to transact given this rate of transactions combined with the natural attrition of closed schemes? (It may be less than 10 years)
PESTEL:
Economic