The UK bulk annuity market recorded its busiest year to date in 2025, according to Aon, a global professional services firm that provides advice and solutions across risk, retirement and health.
Aon attributes the high level of activity to intensifying competition, particularly in smaller transactions, alongside continued insurer appetite across the market. While overall volumes declined compared with recent years, Aon indicates that demand and engagement remained strong.
Aon reports that 367 bulk annuity deals were completed in 2025, surpassing the previous record of 293 in 2024 and 227 in 2023. However, Aon notes that total volumes reached £38.2 billion, below the £49.1 billion recorded in 2023 and £47.7 billion in 2024. Aon also states that it advised on transactions representing more than 25% of total bulk annuity volume during the year.
Aon identifies a continued shift towards smaller transactions as a defining feature of the market. It highlights that 83% of all deals in 2025 were below £100 million, with particularly strong growth in transactions under £10 million, which rose to 119 compared with 58 in 2023. According to Aon, this trend has driven a significant reduction in average deal size, which has fallen by more than half over the past two years.
In its analysis, Aon emphasises that competition in the sub-£100 million segment has increased markedly. It reports that multiple insurers are now actively quoting on smaller deals, with ten insurers completing transactions under £50 million in 2025, compared with eight in the previous year. At the same time, Aon notes that eight insurers each wrote more than £1 billion of business, demonstrating that capacity for larger transactions remains in place.
Aon reports that the second half of 2025 was the most active six-month period on record by number of transactions, with 207 deals completed and £28.5 billion written. Although this was lower than the £32.6 billion recorded in the second half of 2024, Aon considers the activity level to reflect sustained market momentum. It also notes that eight transactions above £1 billion were completed during the year, indicating continued demand for large-scale risk transfer.
From an insurer perspective, Aon states that Aviva, Just Group and Legal & General together accounted for 71% of all deals completed in 2025. Aon highlights that Legal & General completed the largest transaction of the year, a £4.6 billion buy-in, while newer entrants such as Royal London and M&G continued to expand their presence and increase deal volumes.
Aon further reports that the longevity swap market recorded its busiest year since 2020, with £18.8 billion of publicly announced transactions. It notes that this exceeds the combined totals seen in 2023 and 2024. Aon acted as lead adviser on the largest longevity swap of the year, a £6 billion transaction for the BBC Pension Scheme, and attributes growth in this segment to attractive pricing, improved accessibility for mid-sized schemes and increased demand to hedge a wider range of liabilities.
Aon also points to ongoing developments in the superfund market, where consolidation vehicles are becoming a more established part of endgame planning. While activity in 2025 was more limited than expected, Aon explains that improved funding levels enabled some schemes to move directly to buyout. Nonetheless, Aon expects the market to grow as regulatory clarity improves and new entrants increase competition.
Looking ahead, Aon expects bulk annuity volumes to exceed £40 billion in 2026, supported by a strong pipeline of transactions and continued insurer appetite. It emphasises that schemes which are well prepared and able to act quickly will be best placed to secure favourable pricing in an increasingly competitive environment.
Overall, Aon’s analysis suggests that the UK bulk annuity market remains highly active, with structural shifts towards smaller transactions and broader insurer participation continuing to shape its development.
