LONDON, 16 June 2026 – Aon plc (NYSE: AON), a leading global professional services firm, has said that its UK risk settlement team has reached totals of £100 billion in three areas of its activity – in bulk annuity business placed, in longevity reinsurance business placed and in transactions where Aon has provided insurer due diligence advice.
Martin Bird, senior partner and UK head of risk settlement for Aon, said:
"The pension risk settlement market in the UK has grown astonishingly in the last 15 years and Aon's team has remained at its forefront – leading to these three areas of the market in each of which we have played active roles in completing £100 billion of business.
"This market dates back 30 years, when bulk annuities were only used by schemes whose sponsors had become insolvent. But it has evolved substantially since the mid-2000s – courtesy of new arrivals in the insurance market – with schemes starting to use bulk annuities as part of a risk management investment strategy and the new ability to 'buy in'."
Martin Bird continued:
"Aon's team both developed with and anticipated the market, while our range of capabilities has meant that we have worked across all aspects of it – hence the treble of £100 billion. It isn't just big schemes either, the risk settlement market for smaller-sized schemes is booming too, lifting the total number of bulk pension annuity deals completed in 2025 to 367.
"We continue to see constant change and innovation in the market and in all its facets. For example, recent times have seen a big swing to full scheme insurance transactions as a result of healthier funding positions and a transition to buyout.
"For the insurers, there's now a far greater focus on the member experience with more effective support at retirement, better communication and caring for vulnerable scheme members. Insurers are also taking more illiquid assets as well as developing ways for providing member profit sharing. These are major developments which have emerged as experience grows."
John Baines, senior partner at Aon, said:
"There is always the question of 'what's next?' in this market. For example, the longevity reinsurance market continues to evolve with new intermediaries coming online and new solutions being developed and aimed at generating cost-effective ways for pension schemes to access reinsurance capacity. We are also seeing schemes which had previously entered into longevity swaps that are now in a position to move to a bulk annuity.
"For insurers there will be an inevitable focus on how to manage this huge pipeline of streamlined and small transactions, alongside the mega deals. At least five insurers actively participate in both spaces.
"On top of that, we are aware of insurers' capability, appetite and governance to write the first-ever £10 billion-plus bulk annuity transaction. We know there is the appetite from some scheme stakeholders, but it remains to be seen who will be the first to transact."
For more information about Aon's risk settlement team in the UK, visit here.
ENDS
About Aon
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