Overview of the pension risk transfer market
Our overview of the pension risk transfer market details our 2016 new business volumes as well as activity across the market and what we see as key emerging trends.
March 2017
Legal & General had a successful year writing £6.3 billion of UK bulk annuity business including the £2.9 billion Aegon back-book transaction in May and the £1.1 billion Vickers Group Pension Scheme buyout in November, the largest buyout of 2016.
Our report includes a case study of the Vickers buyout, examining the factors behind the transaction and how it serves as an excellent example of a long-term de-risking strategy paying off.
Chris DeMarco, Managing Director, UK Pension Risk Transfer comments:“The market has come through the challenges of 2016 demonstrating great resilience in the face of regulatory, economic and political uncertainty. Our key message for 2017 is that we believe there is scope for the market to grow, fuelled by strong demand, increased insurer capacity and new innovation.
Our vision for the future is a world and economy where companies are free of their legacy pension obligations and focused on growing their businesses, while we look after their members in retirement.”
Notes to editors
Established in 1836, L&G is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.