We may be in our lovely new home at Simmons & Simmons but we wanted to ensure we conducted our traditional annual survey of the industry (and the people that make it).
2025 has been a year of change (and not just for our team!) New entrants and those with renewed ambitions have shifted the landscape, resulting in increased capacity and competition. We’ve showcased M&G and Canada Life’s message to the market below.
Schemes have been well served, with a strong swing towards Trustee choice and bargaining power. We expect a busy year ahead, with market dynamics shifting further. We’re not sure anyone can predict what this survey will say in December 2026!
As always, a huge thank you to our clients for supporting this survey, and our team, throughout 2025. Wishing you all a very merry (and restful) festive period!
Amrit Mclean, Partner
A busy but evolving market in 2025
The market in 2025 has remained busy, with 80% of respondents describing their experience as either “busy” or “very busy”. Some insurers noted that, while the overall volume of transactions has declined compared to 2024, the number of individual deals hitting the market, and the number of transactions being quoted on, has increased. Other insurers commented that the market has remained just as busy across 2024 and 2025. This reflects a shift towards a greater number of smaller and mid-sized deals, with fewer “mega-deals” completing in 2025.
“The busy market from 2024 has continued throughout 2025. Demand for bulk annuities has remained high due to strong funding levels and appetite for schemes to de-risk. We expect market volumes to be lower in 2025, however we expect a record number of transactions to have taken place.”
How would you best describe your experience of the bulk annuity market in 2025?
This marks a continuation of the trend observed in 2024, when the market was described as busy but more manageable than the “extraordinarily busy/unmanageable” conditions reported in 2023. It does also demonstrate that not all insurers’ experience of 2025 was the same.
Factors driving change
Respondents attributed the experience of busyness levels in 2025 to several factors:
Reduced overall market volumes, particularly fewer £1bn+ transactions.
Increased competition, with more insurers participating in each process.
Expanded quote capacity and resources, enabling insurers to engage with a broader range of schemes.
A more strategic approach to triaging and quoting, focusing on well-prepared schemes and those where the insurer’s proposition adds the most value.
“We've seen an increase in the number of insurers participating in processes, giving trustees greater choice, and driving very competitive pricing. The market is also expecting to end the year on a record number of transactions.”
Market dynamics – trustees hold the power
There was unanimous agreement amongst the respondents that 2025 has been a sellers’ market, with trustees holding the stronger bargaining position. This continues the shift first observed in 2024, when all insurers reported that trustees had gained the upper hand, reversing the buyers’ market conditions of 2023.
Is the current bulk annuity market a "sellers" market (trustee has stronger bargaining position) or a "buyers" market (insurer has stronger bargaining position)?
Key drivers for this include:
Increased insurer participation and capacity, giving trustees greater choice.
Competitive pricing, particularly at the smaller end of the market.
New entrants expanding the pool of quoting insurers.
Slightly lower-than-expected market volumes, leading to heightened competition for available deals.
Trustees and sponsors now have increased optionality in their endgame strategy.
Factors determining insurer selection
The top factors cited for determining insurer selection were:
Price
Member experience/administration
Brand/reputation
Transition support and strategy / market approach were also mentioned. This reflects a growing emphasis on non-price factors, with trustees increasingly considering member experience and brand alongside pricing.
What do you think are the three biggest factors determining which insurer a Trustee will choose in 2025?
“With strong funding levels and pricing from insurers, trustees and companies are more frequently considering non-pricing factors when selecting an insurer, which is driving innovation among insurers. We have also seen several examples of trustees not selecting the lead priced insurer, having prioritised non-price factors. Whilst we view the market as being favourable to trustees, schemes must be well-prepared and pragmatic in their approach to market to achieve their desired outcome.”
The importance of relationships
Relationships continue to play a significant role in transaction prioritisation.
Most respondents indicated that strong relationships with consultants and trustees can influence the prioritising of transactions.
Residual risk transactions
Most respondents set the threshold for residual risk transactions at over £300m or £500m, with some considering over £1bn. However, a couple of respondents had set thresholds at over £50m and £100m. Though this is largely consistent with the higher thresholds reported in 2023, this also marks the first year in this survey where respondents have reported as wide of a range of thresholds for residual risk transactions. We have also seen this shift in the market, with insurers entertaining residual risks and other propositional features on a deal to differentiate themselves from their competition.
At what value would you consider agreeing to residual risks on a transaction?
“A greater number of insurers/appetite in the market, combined with more schemes being in surplus, has meant that insurers need to differentiate themselves on other features to be competitive.”
Key takeaways from 2025
Respondents shared a range of broader observations on the 2025 bulk annuity market. Here are some of the themes that emerged:
Although total volumes may not have reached the levels expected at the start of the year, transaction activity remained strong, and competition increased with new insurers entering the market.
2025 has been a transitionary year, with both trustees and insurers adapting to significant changes, including regulatory developments and increased focus on member experience.
Some concern was expressed about transaction preparation standards slipping in 2025.
Strong competition is leading to better outcomes for trustees/companies in a well-functioning and mature market.
There is agreement amongst some of the survey respondents that 2025 has likely paved the way for a busier and more exciting 2026, as explored below.
The responses received to our 2025 survey overall confirm a maturing and highly competitive bulk annuity market, with trustees enjoying greater bargaining power, more choice, and a growing focus on non-price factors. Insurers are responding by investing in internal capabilities and innovation, while newer entrants (including those with renewed focus on the bulk annuity market) continue to reshape the competitive landscape, particularly for smaller schemes.
“Although total volumes may not have reached the levels expected at the start of the year as some large transactions were delayed into 2026 and beyond, transaction activity remained strong, and competition increased with new insurers entering the market.”
Looking ahead to 2026
The consensus among respondents is that the market will remain busy or very busy in 2026. Several anticipate continued high levels of transaction activity, with the sector well positioned for further growth and innovation. Respondents expect member experience, brand, and track record to remain key selection criteria for trustees and sponsors.
What is your prediction for the bulk annuity market in 2026?
Insurers’ main priorities for 2026 include:
Investment in internal infrastructure and new administration platforms
Resource and people development
Innovation to maintain a leading position on trustee and customer service requirements
External infrastructure
This marks a return to the focus on internal capabilities and innovation seen in previous years.
What is your main priority for 2026?
When asked to describe their feelings on 2026, respondents used words such as “competitive”, “fast moving”, “opportunity-rich”, and “exciting”. The outlook is for continued growth, innovation, and competition, with the market expected to remain dynamic and responsive to the evolving needs of trustees and sponsors.
Re-emerging insurers in 2025: Canada Life and M&G
Canada Life
“Canada Life has been in the BPA market for over 10 years, and we are now on a targeted growth journey with a strong focus on servicing schemes of all sizes (including those over £1bn). We have been competitive across the spectrum on pricing as well as proposition, in particular, we are able to offer a number of complex deal features that these schemes may demand.
We wrote our first full scheme transaction with deferred members in H2 2023 following an injection of renewed momentum in the business. To date, we have successfully transitioned five schemes to buy-out, including two with deferred members. We have completed the buy-out process from receiving data to being fully on-boarded in under 1 year, and are investing in our team significantly to make this process simpler and quicker for Trustees. We have a further 35 schemes with deferred members currently in buy-in that are expected to on-board and move to buy-out over the next 2 years.”
Shreyas Sridhar, Canada Life
M&G
“2025 has been an exciting year here at Prudential Assurance Company (‘Prudential’), part of M&G plc, as we’ve focused on building the next phase of our journey. As one of the founding members of the BPA market, we have insured over 400 buyouts during the past 30 years. This deep history provides us with all the building blocks we need to provide financial security to pension scheme members.
We are dedicated to putting customers at the heart of everything we do. We’re proud of the service that we deliver to our customers, from tailored communication channels to a self-serve online portal, allowing our customers to receive quotes in real time. We also embrace benefit complexity and have a strong appetite for offering residual risks cover, giving pension scheme trustees and sponsors peace of mind that their scheme members will receive their exact benefits in full.
We are flexible and partnering in our approach, including when it comes to the transition to buyout. We don’t have any backlogs and are therefore able to move schemes to buyout when they are ready. Leveraging the expertise of M&G Investments, we also provide tailored price locks for every scheme and have facilitated multiple transfers of illiquid assets.
Finally, we love to innovate and are delighted to have launched our award-winning Value Share bulk annuity. Going into 2026, we are excited about our latest innovation, where we expect all BPAs to be powered by our With-Profits Fund, offering members the potential to receive discretionary bonuses, whilst securing their guaranteed scheme benefits in full. Watch this space!”
Rosie Fantom, M&G
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