The UK Pension Risk Transfer (PRT) market has completed an estimated £20bn of buy-ins and buyouts so far this year.
According to Legal & General’s PRT Monitor published today, the US market experienced a record breaking first half, estimated at $26bn.
Both markets are on track for one of their largest years ever, with a significant increase in the number of large pension plans seeking PRT, the report also found.
According to its analysis, in excess of £250 billion of combined UK and US volumes are forecast to be secured by insurers in the next three years.
Across 2024, the monitor reports a significant increase in the number of large pension plans coming to market in both the UK and US, putting the sector on track for one of its largest years ever.
According to the new report, two of the year’s largest transactions to be announced so far have been conducted by Legal & General: a £900 million buy-in with the ICI Pension Fund – its 12th transaction with the fund – and a £1.1 billion buy-in with the SCA UK Pension Plan – a long-standing client of its Asset Management business.
Meanwhile, the market for smaller schemes has also continued to flourish with the number of transactions below £100 million more than doubling from 2020 to 2023. Several insurers have developed streamlined solutions for smaller schemes, including Legal & General’s ‘Flow’ proposition, which aims to deliver pricing certainty and a high-quality onboarding and service experience, as well as supporting clients of L&G’s Asset Management business with asset transfer efficiencies.
Smaller transactions announced this year include Legal & General’s £21 million buy-in with the Leprosy Mission Central Pension Scheme and £16 million buy-in with the John Graham (Dromore) Limited Pension and Life Assurance Scheme.
