LCP is predicting that a further two new players will enter the UK buy-in market in 2024, with buy-in and buyout volumes on course to set another record.

It said that surging activity has attracted new capital providers seeking ways to participate in the growth of the UK buy-in and buyout markets. This includes current UK insurers, overseas insurers and a range of investors expressing appetite to join the market.

As a result, it predicts two new entrants this year, either through acquiring one of the nine existing bulk annuity providers or as a new provider.

This comes as the buy-in market is expected to achieve new record volumes in both 2023 and 2024.

LCP estimates that 2023 will finish on circa £50bn of buy-ins/buyouts – exceeding the previous record of £43.8bn in 2019 – and it forecasts that the market will reach £50bn to £65bn in 2024, making it yet another record year.

It said this outcome will be driven by a record number of £1bn+ deals, with insurers reporting particularly strong pipelines of bigger deals.

Charlie Finch, partner at LCP, said: “The buy-in market is on a rapid upward trajectory, and we’re expecting that to bring significant new investment to the market this year.”

Finch disclosed that LCP is currently in discussions with six potential providers weighing up their options for entering the market.

He added that 2024 looks to be on course to set new records driven by a “growing wave” of schemes seeking buy-in and buyouts.

“Pension schemes need to recognise that market dynamics are now fundamentally different, with insurers’ operational capacity and bandwidth being stretched, but we remain positive about the market’s ability to rise to this challenge,” he said.

“We’re confident that 2024 will bring attractive opportunities for schemes that run effective processes.”

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