Attractive insurance pricing should lead to a busy end to 2026 for the bulk annuity market, despite muted volumes in the first half, according to new analyses.
Separate reports from Hymans Robertson and LCP, published this week, recorded total bulk annuity new business worth £10.2bn in the first six months of the year, across more than 135 transactions.
The total was slightly higher than the first half of 2025, which saw £9.7bn in new bulk annuity business. The second half of last year brought a much greater volume, reaching £28.5bn according to LCP.
Both consultancy groups forecast another uptick in larger deals and general bulk annuity activity in the second half of 2026, with the 2026 total expected to reach £35bn to £40bn. Already, LCP has recorded around £7bn of new business completed since the start of July, including Legal & General’s £1.65bn buy-in with Wood Group’s defined benefit pension scheme.
Lara Desay, head of risk transfer at Hymans Robertson, said: “Looking ahead, we expect the second half of 2026 to exceed the first half in terms of number of transactions and volumes completed. Several large transactions have already completed since 30 June, and the pipeline is strong.
“The market is evolving quickly, and schemes that engage early and prepare thoroughly will be best placed to secure successful deals in an increasingly competitive environment.”
Hymans Robertson pointed to an influx of investment into the UK bulk annuity market, which is expected to support continued new business capacity. Last year, Pension Insurance Corporation was acquired by European insurance giant Athora, while Just Group was bought by Brookfield Wealth Solutions.
More recently, Legal & General struck an asset sourcing partnership with asset manager Blackstone, while Standard Life has secured funding from several external partners to target larger bulk annuity deals.
“We expect market dynamics to continue to be favourable, but the priority is for schemes to be clear on their objectives and be strategic in their approach to endgame solutions.”
Charlie Finch, partner at LCP, said a lack of deals worth more than £1bn in the first half of the year had “created a real opportunity” for those seeking to complete buy-ins, with pricing having improved by 3% since the start of 2026.
“We expect these market dynamics to continue to be favourable, but the priority is for schemes to be clear on their objectives and be strategic in their approach to endgame solutions,” Finch added.
Meanwhile, LCP partner Imogen Cothay pointed out that nine insurers had completed sub-£100m buy-in deals this year, demonstrating a continued appetite for smaller deals and investment in “dedicated capacity and efficient processes to serve smaller schemes”.
| Insurer | H1 2026 volume | H1 2026 market share | H1 2025 volume | H2 2025 volume | Total 2025 volume | 2025 market share (rank) |
|---|---|---|---|---|---|---|
| Rothesay | £2.8bn | 28% | £0.3bn | £4.9bn | £5.2bn | 14% |
| Legal & General | £1.9bn | 18% | £3.3bn | £6.9bn | £10.2bn | 27% |
| Standard Life | £1.6bn | 16% | £0.3bn | £3.6bn | £3.9bn | 10% |
| Aviva | £1.1bn | 11% | £2bn | £2.6bn | £4.6bn | 12% |
| Canada Life | £0.8bn | 7% | £0.2bn | £0.8bn | £1bn | 3% |
| Just Group | £0.6bn | 6% | £1.6bn | £1.4bn | £3.1bn | 8% |
| Prudential/M&G | £0.6bn | 6% | £0.2bn | £1.3bn | £1.5bn | 4% |
| Royal London | £0.5bn | 5% | £0.7bn | £1bn | £1.7bn | 4% |
| Pension Insurance Corporation | £0.3bn | 3% | £1.1bn | £5.7bn | £6.8bn | 18% |
| Utmost | £0.0bn | 0% | £0.1bn | £0.2bn | £0.3bn | 1% |
| Total | £10.2bn | £9.7bn | £28.5bn | £38.2bn |
Source: LCP, insurance company data
