The first half of 2019 has seen the highest ever amount of bulk annuity deals completed by UK pension schemes in a single half year. This included the largest ever UK buyout - The Rolls Royce UK Pension Fund, who completed a bespoke pensioner transaction in excess of £4.6Bn for which Aon were the lead advisor to the trustees. All indications are that this fast pace will continue, for which we are also experiencing a continued flow of buy-in and buyout deals in the smaller and mid-market range, and seeing increased interest in longevity hedging as the market continues to adapt to the new environment of lower mortality improvements. This means that the most well-prepared schemes will be most likely to attract the best pricing.
Our 2019 market update reflects on the deals completed thus far, and gives insights to what we expect for the remainder of 2019 and into 2020.