With final insurer 2025 results now published, analysis by LCP shows a strong finish to the year for the UK pension risk transfer market, with a record-breaking 367 buy-ins totalling £38.2bn.
Buy-in volumes for 2025 at £38.2bn fell short of the levels achieved in 2023 and 2024 when volumes approached £50bn (2023: £49.1bn, 2024: £47.8bn) but demonstrate a continued trend of elevated volumes compared to historical levels.
Activity levels were a different story, surging to a new record of 367 transactions in 2025, a significant increase of 23% from last year’s high (2024: 298 transactions). H2 2025 was also the busiest half-year on record with over 200 deals completed (H2 2024: 165).
The reduced total volume was the result of fewer £1bn+ transactions completing, with seven reported over 2025 compared to a record 14 in 2024 (2023: 12). The two largest transactions were the Ford pension schemes which secured £4.6bn with L&G (across two schemes), closely followed by the £4.3bn full buy-in by the Rolls-Royce UK Pension Fund with PIC.
The fastest growth continued to be transactions by smaller schemes with around 85% of 2025 transactions by number for schemes under £100m (2024: 78%, 2022/23: c70%). All 11 insurers completed buy-ins in this sub-£100m segment – evidence of continued insurer investment in efficient small-scheme processes which complement adviser-led streamlined services.
Strong insurer competition was a particular feature of 2025, intensifying over H2 as insurers strove to meet ambitious new business targets after a relatively muted H1 (H1 2025: £9.7bn, H1 2020-2024 (5-year average): £13.7bn). H2 2025 volumes were the second highest on record at £28.5bn (H2 2024: £32.7bn). Strong competition drove both exceptional buy-in pricing levels and innovation in non-price areas such as improved online functionality to support an enhanced member experience post buy-out.
LCP says that L&G was the clear market leader by volume in 2025 at £10.2bn (27% market share), including the £4.6bn buy-in with the Ford pension schemes and £1.6bn with the BP Pension Fund. Next was PIC on £6.8bn (18% market share), Rothesay on £5.2bn (14% market share) and Aviva on £4.6bn (12% market share). Just and Standard Life also each wrote over £3bn of buy-ins in 2025 (8-10% market shares). The same six insurers dominated the market in 2024, writing over £5bn each last year.
LCP adds that newer entrants to the market over the last three years (M&G and Royal London) started to make their mark, significantly increasing their volumes to £1.5bn+ in 2025 giving each a market share of 4%, up from 1-2% in 2024. M&G also launched this month a market-first “BPA Plus” buy-in where members get bonuses linked to future investment outperformance. Blumont is expected to merge with Just once its parent Brookfield’s acquisition of Just completes (expected early Q2 2026), taking the market to 10 active participants.
“The second half of 2025 saw exceptional activity across the market, reflecting heightened competition and strong engagement from insurers for schemes of all sizes. Smaller schemes have been a particular focus, with streamlined processes and broader insurer participation helping them access attractive pricing and terms as part of competitive processes,” said Ruth Ward, Principal at LCP.
“With record numbers of transactions and a more diverse insurer landscape, trustees are benefiting from a wider set of opportunities and the ability to negotiate solutions that meet their schemes’ and members’ specific needs.”
“Buy-in volumes were slightly down last year but activity continues to increase rapidly, and this goes beyond simply the headline numbers. We’re seeing meaningful developments in the market structure, with new entrants and acquisitions increasing capacity and exciting innovations including the emergence of new value-share arrangements, with both the Stagecoach-Aberdeen transaction and M&G’s BPA Plus proposition allowing members to share in future investment upside,” added Charlie Finch, Partner at LCP.
“This is an exciting time in the market, and the broadening choice is giving schemes a range of attractive options to manage risk and shape their long-term strategy, reinforcing that there is no one size fits all route to achieving the right outcome for members.”
Longevity swaps had a record year totalling £25.9bn in 2025, including two swaps totalling £10bn for the BT Pension Scheme, £7bn across three Lloyds Bank pension schemes and £6bn for the BBC Pension Scheme. This followed a quiet 2024 with only two swaps announced totalling £0.8bn.
2025 saw one small but innovative DB superfund transfer. The Church Mission Society Pension Scheme’s c£55m transfer to Clara Pensions was the first “connected covenant” transfer, maintaining a link to the original sponsor’s covenant. With new DB superfund entrants expected in 2026, including TPT who announced its intention to launch a new DB superfund in October 2025 (subject to regulatory approvals), momentum is continuing to build in the superfund market.
Demonstrating further innovation in the endgame space, 2025 included a first-of-its-kind deal that saw Aberdeen Group replace Stagecoach as sponsoring employer of the £1.2bn Stagecoach Group Pension Scheme, providing Stagecoach with a full risk transfer and members with additional pension increases through a surplus sharing mechanism.
LCP’s analysis is based on the insurers’ final reported results for 2025.
