The lack of pension scheme buy-in transactions over £1bn in H1 2026 contributed to subdued buy-in volumes compared with recent years, while helping to improve pricing levels by 3 per cent since the start of the year, according to analysis by LCP.

The first half of 2026 saw £10.2bn of buy-in transactions completed by UK pension schemes, higher than the £9.7bn recorded for the same period last year, but lower than the £21.1bn seen in 2023 and £15.2bn in 2024.

However, the analysis showed that transaction numbers remained high, with 135 buy-ins completed in H1 2026, the second busiest first half to a year, only surpassed by last year’s 160 transactions.

LCP said a key factor behind the relatively modest value levels was the absence of large deals, with only one transaction exceeding £1bn, which was an unnamed £1.5bn deal with L&G.

Instead, activity continued to be driven primarily by smaller schemes, with sub £100m transactions accounting for around 80 per cent of deals by number, up from around 55 per cent five years ago.

LCP said the relatively muted half-year figures masked strong activity in the market, with £7bn of buy-in transactions already confirmed for H2 2026, including the £1.65bn full buy-in by L&G with the Wood Pension Plan.

The consultancy expected total annual volumes to reach £35bn-£40bn, depending on the timing of several large transactions.

The lower volumes also helped drive stronger competition among insurers, which in turn improved pricing.

LCP's model indicated a 3 per cent improvement since the start of the year relative to a gilt benchmark for a typical scheme.

Commenting on the analysis, LCP partner Charlie Finch, said the lack of £1bn-plus deals in the first half of 2026, “masks the underlying story”, with data showing the market remains highly active, and volumes picking up in the second half of the year.

He said: “Fewer large transactions have created a real opportunity for clients transacting buy-ins this year with exceptional pricing levels.

“For trustees and sponsors, this presents a pricing opportunity for schemes that wish to pursue a buy-in.

“We expect these market dynamics to continue to be favourable, but the priority is for schemes to be clear on their objectives and be strategic in their approach to endgame solutions.”

Discussing the smaller end of the market, LCP partner, Imogen Cothay, said that insurers are investing in dedicated capacity and efficient processes to serve smaller schemes.

“This increased market accessibility is giving smaller schemes a real opportunity to select the insurer which best meets their objectives, with non-pricing factors increasingly driving decision-making.”

She added: “At the same time, we’re continuing to see high levels of investment taking place across both the insurer and superfund market, with investors bringing increasing insurance capacity and new superfund entrants.

“This is a signal of confidence in the long-term future of the risk transfer market, providing pension scheme trustees with a growing range of credible solutions.”

The analysis also found the insurer Rothesay wrote the largest transaction volumes in H1 2026 with £2.8bn of business and a 28 per cent market share, followed by L&G with an 18 per cent share and Standard Life with a 16 per cent share.

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