Pension bulk annuity volumes to exceed £10bn
UK pension bulk annuity volumes are projected to exceed £10bn in the first half of 2026, based on a recent analysis from the consultancy. Aon’s analysis underlines that the upward trajectory reflects sustained interest from both established and emerging market participants.
The market is heating up. Industry observers note that the bulk‑annuity space remained highly competitive throughout the period, with multiple carriers vying for the same pool of sponsors.
The firm reported that activity moved beyond the £9.7bn recorded for the comparable period last year. This increase indicates a sector that remained busy throughout the first six months, with many transactions still awaiting finalisation. Aon also indicated that the bulk of the activity is likely to shift into the latter half of 2026 as several large deals move closer to completion.
Sam Matto‑Willey, head of insurer due diligence at the consultancy, explained, “Based on transactions announced to date, we expect bulk annuity volumes for the first six months of 2026 to exceed £10bn.” He also noted that competition among providers stayed “exceptionally strong.” He highlighted that scheme demand stayed robust, creating attractive opportunities across a spectrum of transaction sizes, from modest buyouts to larger portfolio transfers.
Since the end of June, carriers have logged an additional £6.4bn in deals that are either signed or under exclusivity, suggesting that the pace is unlikely to slow before the second half of the year. The continued inflow of signed and exclusive agreements signals that market momentum is unlikely to wane before the year‑end.
Insurers are adapting quickly. Aon observed that the speed of proposition evolution has become a defining theme, prompting carriers to refine product features at an accelerated pace.
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Growing focus on smaller schemes
Fewer multi‑billion‑pound transactions have opened space for the industry to chase small and medium‑sized schemes. The firm highlighted that more carriers launched dedicated propositions for these plans during 2026, aiming to capture a broader client base.
Innovation isn’t limited to pricing. Some providers now let members manage pension choices digitally, while also expanding call‑centre support for vulnerable participants and piloting live calculation tools that give real‑time projections.
Given the shift, trustees are digging deeper into insurer due diligence. The environment is becoming more detailed as sponsors compare financial strength, ESG credentials and cyber resilience.
Tech is reshaping choices. Enhanced digital tools are also streamlining administrative workflows.
It’s reasonable to think the trend toward bespoke, technology‑forward offerings will keep smaller schemes attractive to a wider set of providers, even if overall market volume steadies later in the year.
