Buyout Market Watch Q2 2017

31 July 2017

Welcome to our second 2016 edition of Buyout Market Watch. We analyse bulk annuity (buy-in/buyout) and other longevity de-risking market developments over 2015 and share our thoughts for the year ahead.

In the heat of the summer of 2017, we take another look at what is happening in the bulk annuity market.

Recent deals, innovative structures, current pricing and most importantly of all, how to save money. Our team have set out a range of articles, covering an interesting time in the market.

What did the first half of 2017 teach us? There was a busy stream of transactions but with volatile insurer pricing; some poor, but much of it very good, with especially competitive pricing for full scheme buyouts.

So what will the rest of the year bring? If history is anything to go by, then we would expect further pricing opportunities during Q4 as insurers seek to complete deals before the year end. In summary, there have not yet been enough super-sized bulk annuity or insurer back book transactions to absorb all of the spare market capacity and so attractive pricing continues.

Schemes preferring to transact this year need to be engaging with the market now, otherwise almost certainly there will be a wait until 2018 for a transaction.

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