More than 350 bulk annuity transactions were completed in 2025, according to a new estimate, as streamlined processes have opened up the market to smaller pension schemes.
The record number compares to 298 deals completed in 2024, according to LCP. Transactions below £100m accounted for more than 85% of all deals completed in the first half of last year, compared to 78% for for the whole of 2024 and around 70% in 2022 and 2023.
Just Group – a major player in small scheme bulk annuity transactions – this week reported that it completed 130 deals in 2025, a record for a calendar year. However, a lack of large deals meant total new business volume was down by 28% compared to 2024.
In recent years, insurers and consultants have launched specialist services and processes designed to make the bulk annuity process more efficient for small deals. LCP said it had completed 118 transactions through its own service for small schemes, while Broadstone, Just Group, Aviva, and Pension Insurance Corporation are among the companies that also have dedicated small deal offerings.
LCP said it had now advised on more than £5bn worth of bulk annuity deals through its small scheme service, which it said made buy-ins faster and more cost-effective by using “pre-agreed contracts with enhanced terms and facilitating more insurers to participate”.
Most recently, the consultancy said it had advised a £24m full scheme buy-in for a scheme sponsored by a Japanese bank. The deal secured the benefits of around 160 members with Just Group. Legal advice was provided by Sackers and Gowling WLG.
David Barnett, chair of trustees for the pension scheme, said: “We are pleased to have achieved this transaction, working collaboratively with the bank, to secure full benefits for the bank’s UK pension scheme. We really value the hard work of all our advisers and how LCP supported us throughout the process, tailoring their streamlined service to ensure the transaction met our specific requirements.”
