Pension insurers invested £178bn in UK assets in 2023, ABI data reveals

Written by Adam Cadle

18/02/2025

Sixty-five per cent (£178bn) of assets held by participating firms providing bulk and individual annuities were invested in the UK in 2023, new data from the ABI has revealed.

Quantifying the scale of pension investment in the UK, the ABI’s report Powering UK Growth Through Pensions, sets out how providers invest across DC pensions, bulk annuities, and individual annuities. The report also highlighted how to create the conditions for UK investment to increase. Its findings demonstrate the power of both DC providers and annuity insurers as investors in the UK economy.

Much of the £178bn from bulk and individual annuities investment is channelled into UK housing and infrastructure, including regeneration projects, renewable energy and social housing which, in turn, supports a range of sectors and creates jobs. This contribution compares favourably to an estimated DB pension scheme investment of 55% of total assets in the UK economy, the ABI stated.

The bulk annuity market is set to drive even more investment into the UK as it continues to expand, with ABI data revealing that de-risking transactions with DB pension schemes totalled £47bn in 2024, covering 341,000 people. This adds to the more than 1.7 million people whose benefits had already been secured by bulk annuity insurers before the start of 2024.

Yvonne Braun, director of policy, long-term savings, health and protection, said: “The power of the insurance and long-term savings industry as a major investor in the UK is enormous. Our new data shows a significant UK bias in annuity providers’ investments and, with 2024 another strong year for transactions in the bulk annuity market, more capital will be available for infrastructure projects across the UK.

"We welcome the Government’s focus on ensuring this potential is maximised, and our report sets out the practical steps to help enable this.”

Related Articles