Record Growth in UK Bulk Annuity Sector in 2025

The UK bulk annuity sector witnessed a record year in 2025, according to global advisory firm Aon. Despite a dip in total volume from previous years, competition within smaller transactions spurred significant market engagement. There were 367 bulk annuity transactions, exceeding 2024's 293 and 2023's 227, with a total transaction value of £38.2 billion—down from £47.7 billion in 2024. Aon advised on over 25% of these deals, showcasing a strong presence in the market.

A notable trend in 2025 was the surge in smaller transactions, with 83% of deals valued under £100 million. Transactions under £10 million doubled to 119 since 2023, reducing the average deal size over two years. The rise in sub-£100 million activities attracted more insurers, with ten completing deals under £50 million, maintaining capacity for larger transactions.

The second half of 2025 emerged as the busiest transaction period, with 207 deals totaling £28.5 billion, slightly less than the £32.6 billion of the same period in 2024. Eight transactions exceeded £1 billion, demonstrating continued demand for significant risk transfers. From the insurer's perspective, Aviva, Just Group, and Legal & General accounted for 71% of completed deals in 2025, with Legal & General closing the largest deal—a £4.6 billion buy-in.

The longevity swap market had its most active year since 2020, amassing £18.8 billion in publicly disclosed transactions, outpacing the combined totals of 2023 and 2024. Aon led as the adviser on the largest swap, a £6 billion deal for the BBC Pension Scheme. Growth in this sector is fueled by favorable pricing and increased interest in liability hedging.

The superfund market's activity was muted in 2025, although improved funding allowed some schemes to transition directly to buyouts. Aon anticipates growth in this sector as regulatory compliance requirements evolve, adding competitive dynamics. Looking ahead, Aon forecasts bulk annuity volumes to surpass £40 billion in 2026, driven by a strong pipeline and insurer interest. Prepared schemes able to act swiftly are set to benefit from favorable pricing and increased competition, shaping the UK's bulk annuity market evolution.