Growth being driven by streamlined services for smaller schemes
LCP said 2023 growth was ‘almost entirely’ driven by deals under £10m
Scheme’s third buy-in transaction fully insures the benefits of all the scheme’s members
Bulk annuity deal covers pension benefits for 390 new retirees since a previous deal in April 2019
Just Group has completed a £340m buy-in with the Ibstock Pension Scheme in the insurer’s largest ever bulk annuity transaction.
The Littlewoods Pensions Scheme has completed a buy-in covering just under £930m of around 6,500 members’ benefits with Rothesay Life, the majority of which relate to deferred members.
Keen insurer pricing and streamlined services will lead to a surge in demand from smaller schemes to undertake bulk annuity transactions, Lane Clark & Peacock (LCP) predicts.
Nimble footwork enables small schemes to compete with the big boys in the buyout market, says Stephanie Hawthorne.
There has been a 30% reduction in the number of small scheme buy-in and buyout transactions, highlighting how insurer attention has shifted towards larger deals.
Paul Spencer, who chairs the trustee board of the BT pension scheme, is to relinquish his role as chairman of the Hermes Investment Management board later this year.