Bulk annuity transactions hit £876m in the first quarter of 2013, according to consultant Barnett Waddingham, up from £492m in the same period last year.

The figures represent a promising start to the year for the market, according to the consultant, after a quiet 2012. That year, despite big buy-ins for the Merchant Navy Officers Pension Fund (MNOPF) and General Motors UK Retirees Pension, saw the lowest level of bulk annuity deals since 2009.

According to Barnett Waddingham's senior bulk annuity consultant Mark Paxton the sustained high prices for gilts had continued to help some fund buy-ins.

During the quarter, Legal & General led the field with transactions worth over £350m. Enhanced annuity specialist, Partnership Assurance, meanwhile, which completed its first transactions in the final quarter of 2012, won further transactions – an area of the market continuing to develop, according to Barnett Waddingham with Aviva, Legal & General and Just Retirement also offering medical underwriting options.

One longevity swap transaction with a UK pension scheme was announced in the quarter: the £3.2bn swap between Legal & General and the BAE Systems 2000 Pension Plan. Another, a £400m swap between Abbey Life and the Bentley pension scheme has since been announced

The figures point to the possibility of a busy year ahead, Paxton suggested: “Historically, Quarter 1 has been a fairly quiet quarter for bulk annuity business so it is encouraging to see this year start reasonably briskly.”

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