Significant bulk annuity and reinsurance transactions in the second half of the year see 2016 become another substantial year for the bulk annuity providers.
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.
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.
Medical underwriting can be an attractive option to help schemes de-risk more cost effectively via either a buy-out or buy-in transaction.
The value of bulk annuity business completed in 2014 has already broken the previous record set in 2008, with the final quarter still to go. Meanwhile, two insurers may be merging.
Quarter 2 of 2014 saw several significant deals completed including the largest ever longevity swap completed by a UK pension scheme. Several schemes also insured further tranches of their defined benefit liabilities having previously carried out partial bulk annuity transactions.