Insurance company M&G is targeting bulk annuity new business volumes of £3bn-£4bn a year over the next two years as it continues to grow its market share.
The group announced this week that it completed 11 bulk annuity transactions in 2025 with a combined value of £1.5bn – its highest annual total yet. M&G said the majority of this total, around £1bn, was written in the fourth quarter of the year.
M&G’s deals completed last year included a £205m buy-in for chemicals company Huntsman’s defined benefit (DB) pension scheme, a double buy-in for two schemes sponsored by CF Fertilisers UK, and a £96m transaction with an unnamed scheme attached to a US-based sponsor.
Kerrigan Procter, managing director for corporate pension solutions at M&G, said: “Through the disciplined execution of our corporate pension strategy during 2025, we have rapidly scaled our position as a trusted partner for UK pension funds.
“Our balance sheet, asset capabilities, and ability to deliver a differentiated proposition to the UK’s pension risk transfer market mean we can offer our clients excellent experience and outcomes.
“With a clear roadmap and strong momentum, we look forward to continuing to deliver long-term value for both clients and shareholders.”
M&G committed approximately £140m of capital to support new bulk annuity business, and intends to spend around £150m a year, with “double-digit returns” on the investment expected.
In a statement, the company said its capital position meant it could be selective when reinsuring longevity risk. “While no longevity reinsurance was utilised in the completion of the 2025 transactions, this remains a potential future management action,” M&G said.
Just’s volumes fall in ‘competitive’ 2025
Meanwhile, Just Group has also updated on its bulk annuity business for 2025, a year in which it completed a record 130 transactions. However, the total value of these deals was £3.1bn, around 28% less than in 2024, due to a lack of larger deals.
During 2025, the company said it wrote five transactions above £100m, with the largest a £270m buy-in. This compares to nine transactions above £100m in 2024, with the largest being its £1.8bn buy-in with the G4S Pension Scheme.
Last year, Just also agreed a £2.4bn takeover deal with North American insurance giant Brookfield Wealth Solutions. This is expected to be completed in the first half of 2026.
David Richardson, Just Group’s chief executive, said the acquisition would be “a great outcome for customers, shareholders and our colleagues”.
He added: “During 2025, our proactive approach to managing our capital resources, pricing discipline and risk selection meant that we sacrificed volume in what was an increasingly competitive trading environment, combined with tightening credit spreads. This dynamic led to a fall in new business margin.”
