UK pension bulk annuity volumes for the first half of 2026 are expected to exceed £10bn, surpassing the £9.7bn of transactions completed during the same period last year, according to Aon.
Aon noted the bulk annuity market remained highly competitive and active during the first six months of the year, with transaction volumes expected to be weighted towards the second half of 2026 as several large deals progress towards completion.
Since the end of June, insurers have reported a further £6.4bn of transactions that have either been signed or entered into exclusivity, which Aon said demonstrated continued momentum in the market.
Aon Risk Settlement Group head of insurer due diligence, Sam Matto-Willey, said: “The UK bulk annuity market remained as competitive as ever and very active in the first half of 2026.
“Based on transactions announced to date, we expect bulk annuity volumes for the first six months of 2026 to exceed £10bn. That’s more than in the first half of 2025, when there were £9.7bn of transactions completed.”
Matto-Willey added that competition between insurers remained “exceptionally strong”, while scheme demand continued to be high and attractive opportunities remained available across different transaction sizes.
In particular, Aon highlighted a growing insurer appetite for small and medium-sized deals, with fewer multi-billion-pound transactions encouraging more insurers to target smaller schemes to meet business objectives.
The consultancy also noted that more insurers had launched dedicated small-scheme propositions during 2026.
Meanwhile, Aon said one of the defining themes of the market this year had been the speed at which insurer propositions continued to evolve.
Aon Insurer Due Diligence partner, Dominic Grimley, suggested that market growth had encouraged insurers to broaden their search for attractive assets, with many developing relationships with global investment firms.
Innovation has also extended to the member experience, according to Aon, with some insurers increasingly allowing members to manage their pensions digitally, alongside enhanced call-centre support for vulnerable customers and the potential use of live calculations.
Aon argued there was also greater variation in transaction structures as insurers sought to meet specific scheme and sponsor requirements, including desired buyout timings, the use of scheme surplus and arrangements that could allow members to share in future asset gains.
Against this backdrop, Grimley said trustees were placing greater emphasis on insurer due diligence as propositions became more sophisticated and differentiated.
“Factors such as member experience, financial strength, ESG credentials and cyber resilience are increasingly important points of comparison,” he added.
