While 2025 saw a more than 20% fall in bulk annuity volumes year-on-year, the volume of buy-in deals less than £100 million in value increased by over 30%, according to Hymans Robertson’s latest report.
The pensions and financial services consultancy revealed that buy-in volumes in 2025 totalled £38.2 billion, a fall of more than 20% compared with £47.8 billion in 2024.
The overall number of deals reached 370, setting a new market record and representing a more than 20% increase from 299 in 2024, driven almost entirely by smaller pension schemes.
While the number of deals sized over £100 million remained broadly flat year-on-year, the number of deals under £100 million rose by more than 30%.
Although the year was characterised by a surge in smaller buy-in deals, larger scheme de-risking activity remained significant. Four insurers completed deals exceeding £1 billion, covering £8 billion in total, and over £18 billion of liabilities were covered by longevity swaps.
Competition was strong across the market for deals of all sizes, with 11 insurers actively participating throughout the year, and an increasing number participating in buy-ins under £100 million, helping to drive competitive pricing and innovation.
Hymans Robertson also noted that 2025 saw developments in the alternative risk transfer space, with TPT announcing plans to launch a superfund.
Michael Abramson, Partner and Risk Transfer Specialist at Hymans Robertson, said, “2025 saw a more than 20% fall in bulk annuity volumes year-on-year. While this drop will have left some insurers disappointed, it hides a growing de-risking trend in smaller pension schemes, with the number of deals less than £100m actually increasing by more than 30% during the year. This is a result of both improved pension scheme funding levels and intense insurer competition.
“Recent insurer M&A activity has reduced the number of market participants from 11 to 10, but it has also brought new capital and asset sourcing capabilities into the market. We expect that this will bring excess supply relative to demand from pension schemes, which is likely to continue to provide attractive pricing opportunities for schemes that are seeking to insure. In addition to competing on price, insurers are continuing to invest in their operational and administrative capabilities, with a focus on offering a high-quality of customer service and a positive member experience.”
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