First half of 2024 sees largest ever number of buy-in transactions says Hymans Robertson

Hymans Robertson’s analysis shows that there were 134 buy-ins in the first half of 2024 – a record number for a six-month period. This compares to 96 buy-ins that were completed during the same period in 2023 – a growth of nearly 40% year on year. The firm’s risk transfer team led the advice on two-fifths of all buy-ins by value during the first half of 2024 and has used this significant data set, along with information from the insurance companies, to analyse buy-in market activity.

In the first half of this year 134 buy-ins were completed covering £15.3bn of pension scheme liabilities.

In addition, the following material risk transfer transactions took place during the first half of 2024:

• Hymans led the advice on the largest superfund transaction, completed between the £600m Debenhams Pension Scheme and Clara-Pensions.

• Hymans advised on a £700m captive insurance transaction.

• Rothesay acquired the c£6bn Scottish Widows buy-in portfolio.

Looking towards the remainder of 2024, the firm anticipates over 250 buy-ins; a record number for a calendar year since the market began in 2006.  It is expected that these buy-ins will cover around £40bn of pension scheme liabilities during the whole of 2024.

Commenting on the figures, James Mullins, Partner and Head of Risk Transfer at Hymans Robertson, said:

“Building on the £49.1bn record set in 2023, 2024 has been a fascinating year for the risk transfer market. The insurers have demonstrated that they can handle record buy-in transaction numbers.  Helped by the new entrants, I expect it won’t be long before we see 300 buy-ins in a single calendar year. The vast majority of these transactions are ‘whole-scheme buy-ins’, many of which will subsequently be looking to move to buy-out.  That could create an administration bottleneck and so trustees need to carefully test their chosen insurance company’s capacity for ongoing administration and the transition to buy-out.

“The superfund and captive insurance transactions, that we completed this year, show that there is now a wider range of transaction types than ever before.  Pension scheme trustees and sponsoring employers need to understand the pros and cons of the different options to work out which risk transfer transaction best meets their objectives.”