The total value of buy-in and buyout transactions completed in the third quarter of 2024 reached around £20bn, marking the largest volume of transactions in the third quarter of any calendar year, according to analysis by Hymans Robertson.

The consultancy said this was a “record value” for buy-in transactions, bringing the total value of buy-in and buyout transactions completed in the first nine months of 2024 to £35bn.

Hymans Robertson forecasted the total value of pension scheme liabilities insured through buy-ins by the end of 2024 would be between £40-45bn.

In addition to this, over 85 per cent of the bulk annuity market activity by value in the third quarter of 2024 involved deals exceeding £1bn.

Commenting on the findings, Hymans Robertson partner and head of risk transfer, Lara Desay, said: “The second half of 2024 has so far been dominated by a number of very large transactions in excess of £1bn which has been a stark contrast to the first half of 2024, which saw a large pipeline of small and medium transactions complete.”

Desay added that Hymans Robertson expects to see a few more transactions complete before the year-end “as insurers look to fulfil their ambitions for the year and allocate remaining surplus capital to new business”.

She explained that with the announcement of three new entrants to the market during 2024, market capacity has increased, creating greater competition and wider choice for trustees to secure their pension scheme liabilities.

“We are seeing record buy-in transaction numbers which continues to be stimulated by improved pension scheme funding levels and expect it won’t be long before we see 300 buy-ins in a single calendar year,” Desay said.

---