Record-Breaking Year for Pension Scheme Buy-Ins
The year 2024 marked a significant milestone in the pension industry with a record-breaking 299 defined benefit (DB) pension scheme buy-ins completed. This figure represents a one-third increase from the previous high of 226 buy-ins recorded in 2023, as analyzed by Hymans Robertson.
Despite falling just short of the all-time high, the total business conducted in 2024 is anticipated to hit £47.6 billion, making it the second-largest annual volume following the record £49.1 billion achieved in 2023.
Significant Transactions and Market Shifts
Throughout 2024, six insurers executed 14 buy-in transactions, each exceeding the £1 billion mark. The second half of the year proved particularly active, with transactions valued at £32.4 billion—the largest ever for a six-month period, surpassing the £28 billion completed in the latter half of 2023.
James Mullins, Partner and Risk Transfer Specialist at Hymans Robertson, noted the bustling activity within the risk transfer market: “2024 was another busy year for the risk transfer market, as evidenced by the number and value of transactions completed. Reaching nearly 300 transactions is a substantial achievement for the buy-in market. Insurers have worked diligently to enhance efficiencies through streamlined processes and innovation—this achievement speaks volumes. Nonetheless, insurers must continue to invest in their post-transaction operations.”
Looking Ahead to 2025
Mullins further commented on the momentum carried into 2025: “The year has already started on an active note, with the scale of buy-in transactions completed in 2024 likely becoming the new standard. The recent entrants to the buy-in market, including Royal London and Utmost in 2024, and Blumont this month, have amplified capacity and options for pension schemes.”
Additionally, established insurers have bolstered their capacity and appetite, as seen by Aviva, Just, and PIC, each having record years in transaction values, with other insurers nearing their peaks. “This increased competition and capacity offer pension schemes excellent opportunities for risk transfer,” Mullins concluded.
