Hymans Robertson has reported that the total value of buy-in and buy-out deals completed in the third quarter of 2024 reached nearly £20 billion, marking the highest volume ever recorded for this period in any calendar year.
This record quarter follows a strong first half of 2024, during which 134 buy-ins were completed—a six-month record—totalling £15.2 billion.
Altogether, the total value of buy-in and buy-out transactions completed in the first nine months of 2024 is approximately £35 billion.
Looking ahead, Hymans Robertson projects that the total value of pension scheme liabilities insured through buy-ins for 2024 will range between £40-45 billion.
More than 85% of the bulk annuity market by value in the third quarter of 2024 is expected to come from deals exceeding £1 billion.
In 2023, the pensions and financial services consultancy reported record-breaking buy-in and buy-out volumes, reaching £50 billion, with both the number and value of transactions the highest ever recorded. Hymans Robertson predicts that £50 billion annually will likely become the standard for buy-in volumes.
Lara Desay, Partner and Head of Risk Transfer at Hymans Robertson, commented, “The second half of 2024 has so far been dominated by a number of very large transactions in excess of £1bn which has been a stark contrast to the first half of 2024, which saw a large pipeline of small and medium transactions complete.
“We expect to see a few more transactions complete before the year-end as insurers look to fulfil their ambitions for the year and allocate remaining surplus capital to new business.
“With three new entrants to the market announced during 2024, market capacity has increased, creating greater competition and wider choice for trustees to secure their pension scheme liabilities.
“We are seeing record buy-in transaction numbers which continues to be stimulated by improved pension scheme funding levels and expect it won’t be long before we see 300 buy-ins in a single calendar year.”
