UK Bulk Annuity Business Increases

13 August 2012 (PLANSPONSOREurope.com) – Total bulk annuity business placed by UK plan sponsors increased to £914m during Q2 2012, from £491m in Q1 2012, according to Aon Hewitt’s Risk Settlement Group Bulk Annuity Market – Flash Update for Q2 2012.

The survey also reveals:
 
•       Pricing opportunities continue to be available for schemes holding gilts.  The opportunity to swap gilts for a pensioner buy-in which provides a higher return as well as a longevity hedge continued over the quarter.
•       Total bulk annuity business placed was £914m during Q2 2012, compared to £491m in Q1 2012.
•       The number of cases written in the quarter was also up – 45 compared with 27.
•       Pipeline activity remains buoyant in terms of quotations being sought.
•       There was a longevity swap deal covering £1.4 billion of pensioner liabilities for Akzo Nobel during the quarter.
•       PIC topped the table of providers, writing over 44% of all business placed in the market during the quarter.  MetLife, L&G and Aviva continued to write smaller deals successfully over the quarter.
 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com