The bulk annuity market has comfortably exceeded £10 billion in each of the last two years, with the clear direction of travel for the vast majority schemes being towards further de-risking as they continue to mature.
Under a challenging funding environment of historically low gilt yields, trustees and sponsoring employers remain firmly focussed on the need to effectively manage both their financial and demographic risks.
Within a competitive and complex bulk annuity market, it is important to fully understand the issues and options available, taking advantage of the analytical tools available to plan the appropriate course of action and be in a position to capitalise on short term opportunities as they arise.
Our 2016 Bulk Annuity Annual Report discusses the latest developments in the buy-in and buy-out market, including the impact of Solvency II and the immediate implications of the EU Referendum. We highlight important issues for trustees and sponsoring employees to consider when looking to de-risk in the most efficient and cost-effective manner.
Throughout our report, we also summarise the views of insurers on key aspects of the market and potential future developments – including the main factors they take into account when assessing a transaction coming to market.