A record number of buy-ins were completed in 2025, new data collated by LCP shows, with the 367 transactions representing a 23% increase on the previous year.
The second half of last year alone brought more than 200 deals, the busiest half-year period on record.
The consultancy’s analysis showed the total value of 2025 deals was £38.2bn, significantly lower than the previous two years, as the pension insurance market has begun to focus more on smaller transactions.
Just seven deals worth more than £1bn were completed in 2025, LCP reported, down from 2024’s record 14. These included Ford’s £4.6bn deal with Legal & General (L&G) insuring two pension schemes, Rolls-Royce’s £4.3bn buy-in with Pension Insurance Corporation, and oil giant BP’s £1.6bn deal, also with L&G.
Small deals worth £100m or less accounted for approximately 85% of all 2025 transactions by number, LCP reported, compared to 78% in 2024 and around 70% in 2022 and 2023, with all 11 bulk annuity providers active in this area of the market.
LCP said this competition had helped drive “exceptional buy-in pricing levels” as well as innovation in other areas, including online functionality and member support.
“This is an exciting time in the market and the broadening choice is giving schemes a range of attractive options to manage risk and shape their long‑term strategy.”
Charlie Finch, LCP
Ruth Ward, Principal at LCP, said: “With record numbers of transactions and a more diverse insurer landscape, trustees are benefiting from a wider set of opportunities and the ability to negotiate solutions that meet their schemes’ and members’ specific needs.”
Charlie Finch, Partner at LCP, added: “This is an exciting time in the market and the broadening choice is giving schemes a range of attractive options to manage risk and shape their long‑term strategy, reinforcing that there is no one‑size‑fits‑all route to achieving the right outcome for members.”
LCP also highlighted a busy year for schemes securing longevity swaps. The BT Pension Scheme carried out two such transactions totalling £10bn, while Lloyds Banking Group’s three main defined benefit schemes all completed longevity reinsurance deals worth a combined £7bn. The BBC Pension Scheme also entered the market with a £6bn swap.
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