Independent Governance Group (IGG) supported the completion of more than £8.5bn of bulk annuity transactions in 2023, according to figures from the professional trustee and governance services firm.

IGG participated in 23 bulk annuity deals during the year, with activity increasing “significantly” in the fourth quarter of 2023, accounting for 40 per cent of all transactions involving IGG last year.

Almost half of the firm’s 2023 total was from the Co-operative Pension Scheme’s £4bn buy-in with Rothesay in November.

This was the largest bulk annuity transaction IGG supported during the year, while the smallest was the Intersil Limited Superannuation Fund’s £1.5m buy-in with Just Group.

There were just under £50bn of bulk annuity deals completed in 2023, with IGG’s transactions therefore accounting for 17 per cent of all deals last year.

Across IGG’s £8.5bn of bulk annuity deals, nearly 100,000 members had their pension benefits insured, including 49,000 pensioners.

“With UK annuity policies still representing a key part of many schemes’ investment strategy, we are pleased to have partnered with scheme sponsors, co-trustees and insurers to provide long-term security for members’ benefits,” commented IGG trustee director and head of risk transfer, Akash Rooprai.

“A bulk annuity purchase is not the only option available to schemes, but it can be the right one in the right circumstances. We look forward to continuing to work with schemes of all shapes and sizes to reach their optimal end-game solution in whatever form it takes.

“In a market trading at record levels, which is expected to continue, ensuring schemes are ready to implement their bulk annuity solution and have the appropriate funding and governance structure in place is imperative to attracting the attention of the risk providers.”

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