Pension risk transfer deals total £7.7bn in H1 2021

The volume of pension risk transfer transactions totalled £7.7bn in the first half of 2021, according to analysis by Hymans Robertson.

This includes buy-in and buyout volumes of £6.8bn, and £0.9bn in Assured Payment Policy transactions.

H1 2021 saw lower than average volumes of pension risk transfers, with most insurers writing “significantly” less business than they usually would during this period.

Hymans Robertson noted that smaller and mid-sized deals dominated the market during the half year.

The consultancy added that the relatively low volume of deals in H1 was due to particularly high volumes at the end of 2020, which led to a “naturally quieter period” at the start of 2021.

Volumes are expected to increase over the second half of the year due to a strong pipeline of deals.

In total, there were 58 risk transfer transactions in the half year to 30 June 2021.

Hymans Robertson head of risk transfer, James Mullins, commented: “With a finalised £6.8bn of confirmed buy-ins and buyouts as at 30 June 2021, the market has been quieter than previous years.

“Despite the slow first half of 2021, insurers are now at one of their busiest ever levels, with a strong pipeline of deals which they expect to transact before the end of the year, including several buy-ins of well over £1bn. This means that transaction volumes for the full year could still be over £25bn.

“In the first part of 2021, Hymans Robertson’s risk transfer team led the advice on over £2bn of buy-ins and we are in no doubt that the remainder of 2021 will be a busy time for our team and the market in general.”

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