Rothesay Life has revealed that it expects to write more than £10bn in bulk annuity transactions in 2019.

The insurer has made the prediction, which would be a record annual performance for a UK bulk annuity provider, in its latest trading update.

Should the target be reached, then Rothesay Life would have an estimated £50bn in assets under management.

It said that balance sheet strength, combined with at least £500m of new equity capital being contributed by shareholders, would help it take advantage of “unprecedented opportunity” in the defined benefit buy-in and buyout market.

According to the update, Rothesay Life is currently in exclusive execution on several significant bulk annuity transactions.

The company executed £3.7bn of new pensions bulk annuity business in H2 2019, bringing its latest year-to-date new business volume total to £4.4bn.

Rothesay Life chief executive officer, Addy Loudiadis, said: “Rothesay Life has a strong history of being disciplined but agile in both investment markets and in new business origination.

"Balance sheet strength and considerable shareholder support allow us to execute on our conviction that there is an exceptional opportunity to write business in the defined benefit de-risking market this year.

“While the political and economic backdrop clearly presents challenges, we believe there will also be opportunities for strong institutions which are risk managed well.

"We expect this to be a record year for new business for Rothesay Life and to finish 2019 as the third largest annuity provider in the UK.”

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