Buyout Market Watch Q1 2018

18 April 2018

In this, our first Market Watch edition of the year, we share views with a 2-page insurer round table discussion. We are also pleased to be able to announce our new buyout comparison service which formally launched in March 2018 and which now has 12 schemes out with insurers. Looking to other longevity de-risking solutions, we have an article explaining how to use captive structures to access reinsurance markets.

2018 has already got off to a flying start, with a number of bulk annuity transactions having already taken place, plus a massive £12bn insurer backbook annuity transfer from Prudential to Rothesay Life. Our own experience bears this out with 3 transactions completed in Q1.

High demand from trustees and sponsors to secure their pension liabilities continues unabated, buoyed by better scheme funding levels and reductions in insurer pricing, particularly for combined deferred and pensioner buyouts. Interest in and take-up of defined benefit transfer values, whether on an individual or bulk basis, has seen a ten-fold increase over recent years and is only set to increase, making buying out a scheme’s remaining liabilities more affordable.

Technological development and innovation also continues apace and we provide an article on how our buyout comparison service intends to revolutionise the industry’s broking model.

We hope you find plenty to capture your interest and look forward to speaking to you over the course of the year.

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