Brookfield Wealth Solutions has confirmed it is entering the UK insurance market to focus on delivering bulk-purchase annuity (BPA) solutions for UK pension schemes.
The entry follows a comprehensive approval process carried out by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
The entry was originally mentioned back in July 2024. At the time, IPE reported that the insurer had filed paperwork with the PRA to set up a new insurer – a process that typically takes six months.
Brookfield will bring its capital and strong track record of servicing policyholders from its substantial North American operations as one of the first new entrants in the UK markets.
Earlier this year, LCP predicted the UK BPA market could see at least two new entrants this year.
Brookfield said that with over £500bn (€605bn) of demand for pension buyouts expected over the next decade, the UK presents a “significant” opportunity to grow, create employment and invest domestically in the UK market.
The firm is expected to begin operations later in the first quarter, subject to final regulatory approvals, and will operate under the Blumont Annuity UK brand.
The entry will further extend Brookfield’s presence in the UK, where it is already a leading investor with over £63bn of assets under management across infrastructure, real estate, and renewable power. Brookfield and its UK portfolio companies employ approximately 23,000 people across the UK.
Sachin Shah, chief executive officer of Brookfield Wealth Solutions, said: “We are thrilled to launch Brookfield Wealth Solutions in the UK. With more than $140bn in total assets, we look forward to serving the retirement needs of UK pensioners for the long term.
“Our group-wide commitment is to provide long-term financial security for our policyholders and clients, serviced by strong, well capitalised companies with high-quality investment portfolios.”
Blumont will be the fourth new entrant insurer in 18 months after M&G, Royal London and Utmost.
Charlie Finch, partner at LCP, said the entry is “welcome news” for schemes looking to insure some or all of their pension liabilities as part of their long-term strategy.
He said: “Trading as Blumont, they will be the fourth new entrant insurer to the market in 18 months when they launch their operations later this month, taking the market to a record 11 insurers quoting for business. They will also be the first new bulk-annuity insurer to be authorised since Rothesay in 2007.”
Finch expects Blumont to have “deep capacity” building on its track record in the US and Canadian markets, with significant capital to deploy.
He said: “This will bring additional competition to the UK marketplace and help to continue the favourable buy-in pricing our clients have benefited from over H2 2024 and 2025 to date.”
WTW has previously predicted that 2024 BPA transactions will close under £60bn, while Aon predicted the market will close between £45bn and £50bn.
Martin Bird, senior partner and head of risk settlement at Aon, said new entrants are always “good news” for pension schemes and their members.
He said: “With such significant capital available to deploy, the news that Brookfield, trading under the banner of Blumont, wish to invest in the UK further underlines the thriving nature of UK pension risk transfer and we look forward to working with them on behalf of our clients.”
Shelly Beard, managing director in WTW’s pension transactions team, expects 2025 to be “a very busy year” for bulk annuities, noting that a new insurer is “very welcome” in terms of capacity and competition.
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