We consider if bulk annuity purchases should be of interest to a wider group of schemes. Whilst there were 132 transactions in 2017, this is still small compared to the 5,700 UK DB pension schemes. Are these other 5,500 schemes missing a trick, or does bulk annuity purchase still only make sense in a small minority of cases?
Will recently proposed regulatory changes in respect of equity release mortgages affect the solvency of insurers?
It has been a steady start for the UK bulk annuity insurers in the first part of 2017. For schemes considering a partial transaction, pensioner pricing continues to look attractive relative to gilt yields.
Final reporting from the insurers for 2016 confirmed a flurry of activity in the last quarter of the year for the bulk annuity providers, with a significant amount of transactions completed. This resulted in total business with UK pension schemes of just over £10.2bn for 2016.
Significant bulk annuity and reinsurance transactions in the second half of the year see 2016 become another substantial year for the bulk annuity providers.
In October, Carclo plc announced the rise in its accounting pension deficit meant that it was no longer able to pay its interim dividend. With this is mind, we discuss the impact of pension deficits on corporate balance sheets come the calendar year end.
Some significant recent transactions suggest that it could be a strong second half to 2016, following a quieter than usual start to the year. The period also saw one of the long-established bulk annuity insurers announcing its withdrawal from the market.
Our latest Current Issues in Pensions Financial Reporting newsletter details the key financial assumptions required for determining pension liabilities under the FRS102 (UK non-listed), IAS19 (EU listed) and ASC715 (US listed).
Our latest Current Issues in Pensions Financial Reporting newsletter details the key financial assumptions required for determining pension liabilities under the FRS102 (UK non-listed), IAS19 (EU listed) and FAS158 (US listed).
It was a relatively quiet start to the year for the UK bulk annuity market in terms of transactions with pension schemes, following the significant activity at the end of 2015.