Buy-outs and Buy-ins Report 2015

Published by Gavin Markham on

Following a record-breaking year in 2014 where over £13bn of bulk annuity transactions were completed, experience over the first half of 2015 suggests another potentially strong year for the market. The emergence of some new entrants into the market over the remaining part of the year will also help further boost the level of competition amongst providers.

For schemes who may be considering a possible buy-out or buy-in, having a full awareness of the options or flexibilities available, and being in a position to take of advantage of market opportunities as they arise, is key to achieving an optimal outcome for both the sponsoring employer and trustees.

Our latest annual report provides an overview of recent market activity and comments on current pricing levels. We also discuss some of the latest developments in the market, with a particular focus on the rapid growth of medical underwriting which now offers potentially attractive pricing opportunities for schemes of all sizes through the advent of 'top-slicing' (i.e. insuring the largest liability members). In addition, we highlight some of the key issues for employers and trustees to consider in helping to drive a successful transaction.