M&G has announced its third bulk purchase annuity (BPA) deal since it re-entered the UK market in September 2023.
On 15th March, M&G entered into a £309m ($390m) premium BPA deal with a UK-based entity. In line with the firm’s first transactions, the identity of the ceding firm was not revealed in the deal’s announcement.
In its full year results, M&G also said that it is aiming to achieve up to £1.5bn in BPA sales a year from now.
M&G was formed from the demerger of M&G Prudential in 2019, with the UK insurance business becoming part of M&G.
Prudential had been an active player in the UK BPA sector between 1997 and 2016.
The UK BPA market has had an active start to 2024, with a number of deals being announced, including a $1.8bn transaction between the Rexam pension fund and Rothesay.
Non-BPA specialists have also struck a number of deals, with Standard Life agreeing a transaction with the UK arm of tech firm Unisys and Aviva inking a deal with Office Depot’s pension fund.
