UK bulk annuity deals surge as smaller schemes drive growth
The UK bulk annuity market recorded £10.2 billion in transactions during the first half of 2026, according to Hymans Robertson. This represents a notable change from 2025, when the average transaction size reached £103 million. In contrast, the first half of 2026 saw the average deal shrink to £74 million, though the number of transactions increased to 138, with schemes holding less than £100 million driving much of the activity.
Insurers have maintained pricing levels that encourage earlier adoption, though transaction volumes remained lower than in previous years. The analysis highlights that trustees are now prioritizing factors beyond cost, including member experience and post-transaction management. Rothesay dominated the market by value, executing 14 buy-ins worth £2.8 billion, which accounted for 28% of total transactions. Legal & General followed with 11 deals totaling £1.9 billion, including the largest single buy-in of the period at just over £1.5 billion.
Smaller schemes have gained from improved market efficiency, with Just completing the highest number of transactions, 46 deals averaging £14 million each, while Aviva handled 32 deals at an average of £35 million. The entry of global capital has further reshaped the sector, as seen in Athora’s acquisition of Pension Insurance Corporation and Brookfield Wealth Solutions’ purchase of Just. Legal & General have also secured additional funding through a partnership with Blackstone.
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The consultancy expected activity to increase during the second half of 2026, noting that several large deals had already completed since 30 June and that the pipeline remained strong. Alternative risk transfer arrangements have also gained momentum, with six deals announced since 2023 covering £2.7 billion in liabilities. Meanwhile, longevity swaps have seen 72 transactions since 2009, totaling £176.1 billion.
Standard Life contributed 16% of the total transaction value in the first half, while Aviva represented 11%.
