Bulk and individual annuity providers increased their UK investments by £22bn to £201bn in 2024, according to data from the Association of British Insurers (ABI).

The figures showed that nearly two thirds (63 per cent) of the £317bn held by providers was invested in domestic assets, backing projects across the country and supporting the UK government’s growth agenda.

Meanwhile, insurers held £119bn in private markets both in the UK and abroad, channelling money into infrastructure, housing, and regeneration projects.

According to the ABI, UK investment through the bulk annuity market is expected to remain strong as more companies transfer their defined benefit (DB) pension liabilities to insurers.

In 2024, the number of people with pensions protected in this way grew to nearly 2.3 million, with insurers paying out £10bn to recipients.

ABI director of long-term savings policy, Dr Yvonne Braun, said: “Bulk purchase insurers are a powerful engine of UK growth.

“Alongside providing millions of pensioners with the security of a guaranteed income for life, paying £10bn in pensions in 2024, our members invest at scale in key UK growth assets, delivering benefits for the wider economy and society.

“We will continue to work closely with government to support a strong pipeline of investable opportunities and sustain this positive momentum.”

In 2024, 72 per cent of all schemes where pensions were secured by insurers were under £50m in size.

Of these, 56 per cent were under £10m in size, with an average of just 48 people per scheme.

On the other hand, schemes valued at over £1bn accounted for just 2 per cent of all bulk annuities held by insurers in 2024.

These had an average of 28,300 people per scheme, and represented 45 per cent of people whose retirement is secured through insurers.

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