The bulk annuity market reached a new high in 2025, completing over 350 transactions. Advisers, law firms, and professional trustees played key roles in driving the activity.
Smaller deals led the market last year. Transactions under £100 million made up more than 85% of all bulk annuities in the first half of 2025. Just Group and Aviva were the most active insurers for these schemes, though all 10 insurers in the defined benefit pensions market took part.
Advisers lead the charge
LCP, Mercer, and Aon were the most active advisers in the sector. Since 2023, LCP has worked on 56 deals worth £34.4 billion, representing 19% of the 293 transactions that named a third-party consultant. Aon managed 43 deals totaling £38.3 billion, indicating a preference for larger transactions. Mercer handled 45 deals valued at £25.6 billion.
Isio appeared in 32 deals, while its subsidiary K3 Advisory was involved in another 23. Gallagher, though part of only eight deals in the sample, expanded its presence through acquisitions, purchasing Buck Consultants in 2023, Redington in 2024, and First Actuarial in 2025.
Many schemes continue using their existing advisers for these deals, often depending on their investment consultant, actuarial adviser, or administrator. Yona Chesner, head of pensions investment at Cartwright, noted this approach may restrict outcomes. “Buy-in and buyout transactions are among the biggest financial decisions trustees will make,” she said. “Schemes examine insurers carefully but don’t always apply the same scrutiny to their advisers.”
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Chesner recommended trustees consider other providers without a full tender process. A quick market review could provide new insights without delaying the deal.
Law firms and trustees shape the deals
Law firms contribute quietly but importantly to bulk annuities, ensuring scheme rules are followed and benefits remain unchanged when responsibility transfers to an insurer.
Professional trustees are also involved in bulk annuity transactions.
The data behind these observations has limitations. It depends on public deal announcements, so some transactions and involved firms may be missing. Several providers have noted differences between the sample and their full records. Still, the figures provide a useful view of who is advancing the bulk annuity market.
Smaller pension schemes face growing pressure as funding challenges mount, making bulk annuities an attractive option for risk transfer.
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