Pension risk transfer transactions total £ 7.7bn in H1 2021

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The volume of pension risk transfer transactions totaled £ 7.7 billion in the first half of 2021, according to Hymans Robertson’s analysis.

This includes repurchase and repurchase volumes of £ 6.8bn and £ 0.9bn of Guaranteed Payment Policy transactions.

The first half of 2021 was marked by below-average pension risk transfer volumes, with most insurers writing “considerably” less business than they usually would during this period.

Hymans Robertson noted that small and medium-sized transactions dominated the market during the semester.

The consultancy added that the relatively low volume of transactions in the first half of the year was due to particularly high volumes at the end of 2020, which led to a “naturally quieter period” at the start of 2021.

Volumes are expected to increase in the second half of the year due to a strong pipeline of transactions.

In total, there were 58 risk transfer transactions during the six-month period ended June 30, 2021.

Hymans Robertson, Head of Risk Transfer, James Mullins, commented: “With a finalized total of £ 6.8bn in confirmed buy-ins and buy-ins as of June 30, 2021, the market has been quieter than years. previous ones.

“Despite the slowdown in the first half of 2021, insurers are now at one of their most active levels, with a strong pipeline of deals they expect to close before the end of the year, including several buybacks of well over £ 1 billion. This means that transaction volumes for the full year could still exceed £ 25bn.

“During the first half of 2021, Hymans Robertson’s risk transfer team have advised on over £ 2bn in buy-ins and we have no doubts that the rest of 2021 will be a period. loaded for our team and the market in general. “


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