In the first half of the year, the UK saw 135 pension risk transfer (PRT) deals with a total value of £10.2bn, compared to 160 transactions the previous year with a total value of £9.7bn. Pension funds with total assets below £100m continued to account for a high proportion of transactions, accounting for 82% of transactions.
Consultants said the subdued headline volume reflected the continued prevalence of smaller transactions, while larger schemes had become more selective about timing and pricing.
Rothesay led the market, writing £2.8bn across 14 transactions and taking a 28% share following the launch of Radius, its small scheme offering.
Rothesay is taking the number one spot from Legal & General (L&G), which has dominated the market in 2025 with a 27% market share. L&G is now in the number two spot with £1.9bn and an 18% market share, followed by Standard Life with £1.6bn and a 16% market share, and Aviva with £1.1bn and an 11% market share.
| Rank | Insurer | H12026(£bn) | H12026share | H1 2025 (£bn) | H2 2025 (£bn) | Total 2025 (£bn) | 2025 share (rank) |
|---|---|---|---|---|---|---|---|
|
1 |
Rothesay |
2.8 |
28% |
0.3 |
4.9 |
5.2 |
14% (3) |
|
2 |
Legal & General |
1.9 |
18% |
3.3 |
6.9 |
10.2 |
27% (1) |
|
3 |
Standard Life |
1.6 |
16% |
0.3 |
3.6 |
3.9 |
10% (5) |
|
4 |
Aviva |
1.1 |
11% |
2.0 |
2.6 |
4.6 |
12% (4) |
|
5 |
Canada Life |
0.8 |
7% |
0.2 |
0.8 |
1.0 |
3% (9) |
|
6 |
Just |
0.6 |
6% |
1.6 |
1.4 |
3.1 |
8% (6) |
|
7 |
Prudential |
0.6 |
6% |
0.2 |
1.3 |
1.5 |
4% (8) |
|
8 |
Royal London |
0.5 |
5% |
0.7 |
1.0 |
1.7 |
4% (7) |
|
9 |
PIC |
0.3 |
3% |
1.1 |
5.7 |
6.8 |
18% (2) |
|
10 |
Utmost |
0.0 |
0% |
0.1 |
0.2 |
0.3 |
1% (10) |
|
Total |
10.2 |
100% |
9.7 |
28.5 |
38.2 |
100% |
Source: LCP’s insurer data
Speaking at an XPS Group webinar on Tuesday, Steve Purvis, head of risk settlement at XPS, said sustained pricing competitiveness was “the best we’ve ever seen since the inception of the bulk annuity market”. He said pricing for a typical scheme had improved by around 3%-4% over the past five years.
LCP’s pricing model similarly shows a 3% price improvement since the start of the year for a typical scheme relative to the Gilt benchmark.
Purvis added that the number of insurers bidding on transactions had increased by around 50%, with three insurers now commonly competing for smaller buy-ins between £10m and £30m, which historically often attracted a single bidder.
According to Dominic Grimley, partner in Aon’s insurer due diligence team, the innovation is also extending to member experience.
He said: “For the most advanced insurer services, members can increasingly manage their pension digitally while the insurers’ call centres can provide enhanced support for vulnerable customers and potentially utilise live calculations.”
In its H1 update report, Aon said innovation is also being driven by the continued expansion of streamlined propositions for schemes below £100m and increasing competition for transactions in the £20m-£100m range. The consultancy said trustees are placing greater emphasis on non-pricing factors when selecting an insurer, including member experience, operational capability, financial strength, ESG credentials and cyber resilience.
Over the past 18 months, several insurers have attracted significant external investment.
Athora acquired Pension Insurance Corporation (PIC), and Brookfield acquired Just Group, while L&G partnered with Blackstone to strengthen its asset-sourcing capabilities. Standard Life also announced a capital-sourcing partnership for its pension risk transfer business with firms including CVC and Prudential Financial.
Aon said the influx of capital should help support innovation, insurer capacity and competition across the market.
Total volumes
Speaking during the XPS webinar, Rothesay business development lead Simon Bramwell said industry volumes written during the third quarter had likely already matched the entirety of first-half production.
Consultants expect full-year volumes of £35-40bn, with around £7bn of transactions for the second half of the year already confirmed, including a £1.65bn full buy-in between Wood Pension Plan and L&G.
Charlie Finch, partner at LCP, said: “The lack of £1bn+ deals in the first half of 2026 masks the underlying story, with the data showing the market remains highly active with 135 transactions completed, the second-highest first half ever. We are seeing volumes pick up in the second half of the year, putting the market on track to reach around £40bn for the fourth year running.”
He said fewer large transactions had created an opportunity for schemes to secure pricing around 3% better than at the start of the year.
Imogen Cothay, partner at LCP, added: “Nine insurers completed buy-ins below £100m this year, demonstrating that they are investing in dedicated capacity and efficient processes to serve smaller schemes. This increased market accessibility is giving smaller schemes a real opportunity to select the insurer which best meets their objectives, with non-pricing factors increasingly driving decision-making.”
