M&G has reported growth in its bulk purchase annuity (BPA) business, completing £1.5bn in transactions during 2025, an increase of around 65 per cent year-on-year.

The group completed 11 BPA transactions over the year, with £1bn of new business written in the fourth quarter.

M&G said the performance meant it was on track to achieve annual BPA sales of between £3bn and £4bn by 2027.

The latest results marked an acceleration in M&G’s presence in the UK pension risk transfer market, following new business volumes of £0.6bn in 2023 and £0.9bn in 2024.

To support the scale of new business written in 2025, M&G deployed approximately £140m of capital, predominantly in the second half of the year.

This was in line with its stated target of up to £150m per annum, with the firm expecting double-digit returns on the capital deployed.

M&G added that its capital position enabled it to be selective in how it deployed longevity reinsurance.

While no longevity reinsurance was used in completing the 2025 transactions, the firm stressed that this remained a potential future management action.

Looking ahead, the company said it would continue to strengthen its competitive position through product innovation, differentiating its offering, and supporting long-term growth in what it described as an attractive market.

Indeed, the BPA market is expected to exceed £50bn in 2026, as trustees navigate a growing range of de-risking options amid regulatory reform and strong funding levels, according to recent Standard Life analysis.

M&G Corporate Pension Solutions managing director, Kerrigan Procter, noted that the firm had rapidly scaled its market position through "disciplined execution" of its corporate pension strategy.

“Our balance sheet, asset capabilities, and ability to deliver a differentiated proposition to the UK’s pension risk transfer market mean we can offer our clients excellent experience and outcomes," Procter said.

“With a clear roadmap and strong momentum, we look forward to continuing to deliver long-term value for both clients and shareholders."

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