UK bulk annuity market registers record H1 results

Written by Adam Cadle

28/09/2023

The first six months of 2023 saw over £22bn of premiums written in the UK bulk annuity market – a record for the H1 period, according to latest EY analysis.

EY analysed publicly stated H1 volumes and announced transactions, and said if growth continues throughout the second half of this year, the market will generate the highest annual volume of premiums on record and surpass the previous peak of £44bn in 2019.

Chris Anderson, EY bulk annuity consulting lead, commented: “It has been encouraging to see schemes of all sizes – from £600,000 up to £6.5bn – transacting in the market in H1 2023. However, it is clear that insurers are being more selective than in prior years, in part due to significant regulatory and accounting change such as the introduction of IFRS 17 and the ongoing PRA consultations on Solvency UK, so it’s never been more important for schemes to come to market fully prepared.

“Given the high – and sustained – level of demand for schemes currently, firms are continuing to invest in capability and innovation, and we have also witnessed several new firms exploring entry to the market.”

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