The value of assets transferred to insurance company Paternoster reached £2.7bn in 2008.

The company, which takes responsibility for the risks associated with companies' defined benefit (DB) pension schemes, has announced a 2008 full-year premium income of £1.1bn.

As at the end of 2008, Paternoster had the responsibility for 38,000 pensioners and 7,500 deferred members of 42 pension schemes, paying nearly £13 million of pension payments every month.

Mark Wood, chief executive of Paternoster, commented: "With assets secured in the region of £8bn, the total insured buy-out market in 2008 appears to have grown by nearly 190 per cent over 2007.

"The instinct of trustees to secure the promise to pay pensions through transferring scheme assets and liabilities to an insurance company has grown stronger as the markets have become more difficult. Understandably corporate sponsors and trustees have, recently, been cautious about the cost of buy-outs."

He added that in his opinion, many cases have wisely been deferred, although the market saw "spectacular" growth in 2008. "The scale of our current pipeline suggests that there will be further strong demand as 2009 unfolds," he added.

- Pensions Age January 2009

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