Projected Surge in the Bulk Annuity Market by End of 2026
The bulk annuity market is on track for a surge in activity by the end of 2026, driven by attractive insurance pricing, despite a sluggish start to the year.
Recent analyses from Hymans Robertson and LCP reveal substantial shifts in the market dynamics. Their data indicates that during the first half of 2026, £10.2 billion in new bulk annuity business was transacted across over 135 deals, slightly up from £9.7 billion during the same timeframe in 2025. The latter half of 2025 had seen a notable uptick, with transactions reaching £28.5 billion. Experts forecast that the total volume in the bulk annuity sector could range from £35 billion to £40 billion for the entire year. From July 2026 onward, approximately £7 billion in new business has already been reported, including a significant £1.65 billion buy-in involving Wood Group's pension scheme, orchestrated by Legal & General.
Factors Driving Market Growth
Lara Desay, the head of risk transfer at Hymans Robertson, attributes this market vigor to positive pricing trends. "We expect the second half of 2026 to exceed the first half in transaction volume," she stated. Desay advised pension schemes to engage in early and robust preparation to capitalize on these competitive conditions. Furthermore, strategic mergers such as the acquisition of the Pension Insurance Corporation by Athora and Just Group's merger with Brookfield Wealth Solutions are poised to inject additional capital into the sector, amplifying growth prospects.
The Competitive Edge
While the first half of the year didn't see any deals surpassing £1 billion, as noted by Charlie Finch from LCP, he posits that current market pricing presents opportunities for schemes considering sizable buy-ins. Finch emphasizes the need for pension schemes to crystallize objectives and formulate endgame strategies to maneuver effectively within this burgeoning market. Additionally, smaller transactions are gaining traction, with LCP partner Imogen Cothay highlighting the prevalence of sub-£100 million deals, indicating a sustained interest in catering to smaller schemes through specialized service offerings.
Recent Key Transactions
| Timeframe | Volume (£ Billion) | Notable Deals |
|---|---|---|
| 1H 2026 | 10.2 | 135 transactions |
| 2H 2025 | 28.5 | Larger transactions |
| July Onwards, 2026 | 7.0 | £1.65 billion Wood Group buy-in |
As insurance market conditions evolve, industry insiders anticipate robust activity in the bulk annuity space. Insurance agents, brokers, and other professionals should closely monitor strategic partnerships and pricing trends, aiding their clients in navigating these promising opportunities. Early engagement and clear positioning remain crucial for those seeking to leverage the anticipated market boom towards the end of 2026.