Small bulk annuity transactions worth £100m or less dominated the market in the first half of 2025, according to new research from Aon, aided by new entrants.
In a report published this week, Aon said Aviva and Just have remained the dominant players in this segment of the market and have written 37 and 57 transactions respectively in the sub-£100m range during the first half of 2025.
Combined, these deals represented more than 70% of all deals under £100m announced in the year to the end of June.
While some insurer results are still to be published, Aon said it was already aware of 137 transactions in the first half of 2025, worth approximately £10bn in total.
The number of transactions written has surpassed the 133 that were completed over the first half of 2024, representing the highest number of deals in the first half of any year.
“Since 2024, we have seen greater appetite across the market to participate in competitive auctions for smaller-sized schemes.”
Aon bulk annuity market update
However, it added that the market may not quite reach the record high of 167 deals secured in the second half of 2024.
This trend of smaller transactions dominating the bulk annuity market has continued from 2024, when 78% of all transactions written were below £100m in size.
Aon indicated that the trend towards smaller transactions was partly driven by new entrants.
“In the past, a smaller transaction may have expected a small number of bidders, or even insurers to require exclusivity up front,” Aon’s report stated. “However, since 2024, we have seen greater appetite across the market to participate in competitive auctions for smaller-sized schemes.
“This has been partly driven by new entrants, but is also as a result of other insurers looking to claim market share where there are fewer billion-pound-plus opportunities.”
‘More options needed for small schemes’
Despite the rise in the number of small pension schemes accessing bulk annuities, consultancy group Hughes Price Walker this week called on the pensions industry to do more to support smaller defined benefit (DB) schemes in accessing viable and efficient endgame solutions.
Ray Hughes, director and actuary at Hughes Price Walker, said: “Many smaller DB schemes are already very well-run and, having gone through the right preparation, are actively engaging in endgame discussions – benefiting both the scheme and members.
“But despite growing surpluses and strong governance, some still face barriers that slow down or complicate the path to buy-in or buyout. These are often structural, such as legacy systems, poor data, or limited insurer engagement, rather than inherent to the schemes themselves.
“Smaller schemes should not be disadvantaged by their size. With the right tools, advice and planning, they can, and increasingly do, achieve strong outcomes. But we believe the wider industry could do more to make that path smoother and more accessible – regulators, advisers, and insurers all have a role to play.”
Plastics manufacturer secures £4m buy-in with Just
Just Group has insured the SPM Plastics Pension Scheme for £4m, securing the benefits of all 38 members.
The scheme is sponsored by SPM, a specialist manufacturer of industrial plastic products.
Quantum Advisory advised on the transaction and provided actuarial and investment advice as well as administration services.
David Jervis, consultant and actuary at Quantum Advisory, said the deal followed a series of “proactive risk management” activities by the scheme, including an enhanced transfer value exercise and “timely adjustments to the investment strategy to align with insurer pricing”.
He added: “Data quality and thorough preparation were pivotal, from the detailed administration checks undertaken to ongoing reviews and mortality tracing. This gave insurers confidence and helped avoid surprises during the data cleanse.
“Combined with early engagement on investment strategy and strong collaboration between all parties, we were able to deliver a smooth and cost-efficient transition from buy-in to buyout for the scheme and its members.”
