Aviva wrote £2.4bn worth of bulk purchase annuity deals in the third quarter of 2021 as activity accelerated “strongly”, its Q3 2021 Trading Update has revealed.

This brought the firm’s total bulk annuity transaction volumes for the first nine months of 2021 up to £4bn.

By comparison, Aviva wrote £5bn of bulk purchase annuity deals in the first nine months of 2020.

Bulk annuity deals completed by Aviva in the third quarter of 2021 included a £900m buy-in with the Kingfisher Pension Scheme and a £320m buy-in with the John Laing Pension Fund.

The firm said it expects to write £5-6bn of bulk annuity volumes in total this year, due to strong sales in Q3 and a "good pipeline" of transactions.

Aviva described the bulk annuity market in the first half of 2021 as “slow”, although activity subsequently “accelerated strongly” in the third quarter.

Overall sales within its Savings & Retirement business increased by 34 per cent in Q3, while workplace sales rose by 24 per cent due to increased membership in existing schemes and “good levels” of new scheme wins.

Aviva stated that environmental, social and governance (ESG) credentials were “increasingly a key factor” for employers selecting a new provider.

“I’m delighted with the growth we’ve delivered in our UK Life business," commented Aviva CEO of UK & Ireland Life, Doug Brown. "New business sales are strong and we’re continuing to see excellent growth in savings and retirement.

“I’m particularly pleased with the continued growth in our platform business where we have seen a very buoyant advised market building on our record tax year-end. We’re continuing to see strong demand and an increase in customer confidence.

“Saving for retirement is increasingly important and our workplace pensions business has seen higher sales, boosted by new scheme wins. We are also continuing to help companies de-risk their own pension schemes through bulk purchase annuity deals like those with the Kingfisher Pension Scheme and the John Laing Pension Fund secured in Q3.

“We have built strong momentum throughout the year and I am confident about our prospects in the final quarter.”

Share Story: