Legal & General Group plc, a UK-based multinational financial services company specialising in insurance, asset management, and retirement solutions, has released its 2025 Global Pension Risk Transfer (PRT) Monitor.
The report forecasts that over the next decade, up to £1 trillion in pension liabilities could be transferred to insurers across global markets.
According to L&G, this trend could enable companies to reduce risk on their balance sheets and focus on core operations, while providing long-term income security for millions of pension scheme members and directing investment into areas such as housing and infrastructure.
The report estimates that the £1 trillion opportunity could comprise as much as £0.5 trillion in the UK, £0.4 trillion in the US and £0.1 trillion in Canada, with further growth potential in other markets.
UK PRT volumes in 2025 are projected to be between £40 billion and £50 billion for the third consecutive year, following £47.8 billion in 2024, the second-highest figure on record.
<!–
–>
In the US, volumes totalled $51.8 billion in 2024, also the second largest year for the market, with expectations for 2025 in the range of $35 billion to $45 billion. Canada achieved a record CAD $11 billion in 2024, while the Netherlands and Ireland are also showing signs of expansion.
In the UK, the market saw 299 transactions in 2024, with six insurers each writing over £5 billion for the first time.
Fourteen buy-in transactions exceeded £1 billion, around one-third of which were completed by L&G, including deals with pension schemes sponsored by Deutsche Bank, SCA and Sanofi.
Early 2025 has seen further large transactions, such as an £800 million buy-in with the Honda Group – UK Pension Plan and a £785 million buy-in with Anglo American.
Smaller schemes are also increasingly active, with plans under £100 million accounting for nearly 80% of transactions in 2024. L&G’s Flow proposition, aimed at supporting smaller schemes, has secured more than £800 million since its launch in 2022.
Pension scheme funding levels in the UK are reported to be at historic highs, with The Pensions Regulator estimating that around half of defined benefit schemes are now fully funded or better on a buyout basis.
L&G’s longer-term projections suggest more than £500 billion could flow into the UK PRT market between 2029 and 2043, with service quality and member support playing a growing role in insurer selection.
Internationally, the US market remains active despite a reduction in transactions over $1 billion in 2025. Buy-in transactions, more common in the UK, are becoming increasingly prevalent in the US, particularly as part of full plan terminations where pricing is secured ahead of buyout. Canada continues to grow, including over $3 billion in inflation-linked transactions last year.
In the Netherlands, upcoming pension reforms could generate between €20 billion and €70 billion in PRT activity by 2028, while Ireland and Japan are showing early signs of growth.
L&G says it is positioning for global expansion through strategic partnerships with Blackstone, the world’s largest alternative asset manager, and Meiji Yasuda, a major Japanese mutual life insurance company.
Andrew Kail, CEO, Institutional Retirement, L&G, commented: “The PRT market continues to enjoy significant momentum, with £1 trillion in global opportunities. This momentum is driven by strong funding levels, regulatory clarity, and increasing sponsor engagement.
“In the UK, the maturity of the market is reflected in both the scale and number of transactions completed each year. Meanwhile, the US is the world’s largest DB market and other international markets are evolving rapidly.
“What truly sets L&G apart is not just our scale, global reach, and nearly four decades of experience – but our unwavering commitment to delivering exceptional customer service. With deep expertise in both investment and insurance combined with our market-leading origination capabilities, L&G is well positioned to support pension plans globally through this exciting period.”
The post L&G’s 2025 global PRT monitor signals £1tn market opportunity appeared first on ReinsuranceNe.ws.
