Further M&A activity expected in UK pension and risk transfer market

Further merger and acquisition activity among bulk annuity insurers is expected over the next few years, according to LCP, following three major acquisitions announced last year.

Mergers and acquisitions have been a key feature of 2025 within the realm of pension risk transfer (PRT), with three of the 11 insurers active in the UK’s bulk annuity market announcing acquisitions by international insurers.

In July, Pension Insurance Corporation (PIC) was acquired by Athora in a £5.7bn deal, while Just Group was bought by Brookfield Wealth Solutions for £2.4bn.

Shortly before Christmas, Utmost’s life and pensions arm was acquired by US-based JAB Insurance. The sale encompassed the entire Utmost’s life and pensions business, representing more than £5bn in assets and 175 employees.

All acquisitions are expected to be completed by mid-2026.

Other insurers have sought strategic partnerships. In July, Legal & General (L&G) and Blackstone partnered to combine L&G’s PRT and asset management strengths – including a £92bn annuity book and £1.1trn in assets under management – with Blackstone’s $465bn credit platform.

In October, Phoenix confirmed it was in talks with private capital firms over a potential partnership to accelerate the growth of its UK PRT business, with market commentators expecting it could pursue a similar model to the partnership between L&G and Blackstone.

With the UK bulk annuity market set to remain highly active – with a predicted buy-in volume to reach a record £55bn in 2026 – LCP anticipates continued interest from overseas investors in further acquisitions, driven by the scale, maturity and significant asset inflows into the UK bulk annuity market.

Charlie Finch, partner at LCP, said: “The UK buy-in market continues to demonstrate remarkable depth and strength alongside an expanding range of wider endgame options. Our forecast of £40–55bn of buy-ins in 2026 reflects robust funding levels and a substantial pipeline of deals, supported by highly competitive insurer pricing.

“The strategic acquisitions of insurers last year should give schemes confidence in the depth of long-term investor backing for the market, reinforcing competition and driving continued innovation over the rest of the decade.”