Pension scheme buy-in activity reached a record-high of 367 transactions in 2025, although overall deal value fell to £38.2bn, analysis from LCP has revealed.

The number of deals marked a 23 per cent increase on 2024’s previous high of 298 transactions, with the second half of the year the busiest on record, delivering more than 200 transactions.

While total value was lower than 2023 (£49.1bn) and 2024 (£47.8bn), the market continued to operate at elevated levels, with LCP describing activity as remaining at a sustained “cruising altitude”.

The dip in value was attributed to a reduction in very large transactions, with seven deals above £1bn completed in 2025, compared to 14 in 2024.

The largest transactions included a £4.6bn buy-in for the Ford pension schemes with Legal & General, and a £4.3bn deal for the Rolls-Royce UK Pension Fund with Pension Insurance Corporation.

However, smaller schemes continued to drive activity, with around 85 per cent of transactions involving schemes under £100m, up from 78 per cent in 2024.

All 11 insurers were active in this segment, reflecting continued investment in streamlined processes and increased accessibility for smaller schemes.

Meanwhile, competition among insurers intensified, particularly in the second half of the year, driving stronger pricing and innovation in areas such as member experience and post-buyout services.

LCP principal, Ruth Ward, described market activity in the second half of 2025 as "exceptional".

"Smaller schemes have been a particular focus, with streamlined processes and broader insurer participation helping them access attractive pricing and terms,” she added.

LCP partner, Charlie Finch, noted that buy-in volumes were slightly down last year, but activity continued to increase rapidly, going beyond simply the 'headline' numbers.

"We’re seeing meaningful developments in the market structure, with new entrants and acquisitions increasing capacity and exciting innovations, including the emergence of new value-share arrangements," Finch concluded.

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