M&G to launch with-profits BPA offering

Written by Adam Cadle

03/09/2025

M&G has announced plans launch a with-profits bulk purchase annuity (BPA) early next year, as it continues to expand on its BPA capabilities.

In its interim report for 2025, the group confirmed that it has been working to improve its BPA offering, enhancing its ability to quote on deals and optimise pricing, while also progressing the development work to bring to market a with profits BPA with a planned launch for early 2026.

M&G previously announced that it was re-entering the BPA market back in late 2023, with the news that it had completed two buy-in transactions totalling £617m.

The group's report confirmed that it has completed six traditional BPA deals since then, and, despite a quiet market in the first half of the year, executed £0.2bn in H1.

It also has a "good pipeline" for H2, having closed on £0.1bn in H2 so far, and is already exclusive on a further £0.2bn.

To support this work, the group confirmed that it has strengthened the core pension risk transfer team with more than 25 hires across origination, proposition and pricing.

The group also significantly expanded its capability to quote deals, increasing it six-fold, with further expansion to come

In addition to this, it implemented longevity reinsurance capability for new business.

As a result, the group is now on track to launch a new "unique" proposition powered by its £130bn with-profits fund in Q1 2026.

M&G group chief executive officer, Andrea Rossi, said: “I am pleased with our progress over the first six months of the year. A key highlight is the positive £2.1bn net flows from open business, a £3.2bn improvement from the same period last year.

“We are broadening our product offering in life, with the planned launch of our with-profits BPA early next year.

"This solution will be a key competitive advantage in the UK retirement market. PruFund continues to deliver strong investment outcomes and, thanks to the smoothing mechanism, protected its clients from the market volatility in April.

"This performance has generated increased client demand, improved sales, and has led to positive net inflows since June.

“The balanced and diversified nature of our business model, as well as the momentum across our Asset Management and Life businesses, gives me confidence for the future."

This comes amid growing focus on the UK's BPA market, with two major market players, Just Group and Pensions Insurance Corporation, recently acquired, in news that Chancellor, Rachel Reeves, highlighted as a demonstration of the "strong faith" in the UK economy.

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