UK pension risk settlements to see volumes of over £45bn in 2021: Aon
Aon expects the UK pension risk settlement market to see volumes of over £45 billion reported for full-year 2021, making it the third year in a row that it has reached this level.
Compared with recent years, the market in the first half of 2021 was relatively subdued with £7.7 billion of bulk annuity deals completed.
However, the pace then accelerated in the next six months and Aon expects that there will be close to £30 billion of bulk annuity deals completed by the end of the year.
Karen Gainsford, associate partner at Aon, said: “The pattern of bulk annuity deals has been unusual in 2021 , no doubt as a result of wider market conditions. Even so, we think it’s likely that deal volumes from July to December will amount to over £20 billion.
“That would make it the second-busiest six-month period after the £26.3 billion recorded in H2 2019. It’s also worth noting that almost half of that 2019 figure was covered by just three schemes – Telent (£4.7 billion), National Grid (£4.4 billion over two deals) and Asda (£3.8 billion). Those were some of the largest deals ever completed in this field.
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