Royal London has confirmed that it has entered the UK pension bulk purchase annuity (BPA) market.

The life, pensions, and investment mutual stated that it will be focusing on working with trustees and advisers on BPA transactions of up to £500m.

Earlier this year, Royal London announced plans to enter the BPA market, after completing its first buy-in deal with the trustees of the Royal Liver UK pension scheme in November 2023.

A team of 40 people, lead by director of BPA solutions, Paul Bowker, has been established, with the aim of offering trustees access to a “diverse range of skills and expertise”.

The firm stated that the team had been involved in hundreds of buy-ins and buyouts, drawing on experience from a range of bulk annuity providers and consultancies.

Royal London’s BPA activity to date includes a £250m full-scheme buy-in policy with the trustees of the Royal Liver UK Pension Scheme in November 2023, and a further £350m buy-in in January 2024 to insure a subset of members in the Royal London Group Pension Scheme.

Furthermore, in July, the company transacted with its first external pension scheme, securing a £30m full-scheme buy-in, followed by a further £100m deal with an unnamed pension scheme in September.

Commenting on the announcement, Royal London group chief executive officer, Barry O’Dwyer, said: “With an increasing number of pension schemes looking to meet their de-risking objectives, it’s an important time to be providing a mutual choice.

“Royal London is the only mutual in the BPA market, and we believe that will be a very attractive proposition for many trustees.

“We’re off to a strong start as we continue to focus on establishing a reputation as an insurer of choice for trustees and their advisers.”

Royal London director of BPA solutions, Paul Bowker, added: “We have invested significantly to build a compelling bulk annuity offering for trustees and their members.

“They will be able to partner with a well-known mutual brand with proven financial strength, in the confidence we only have their members’, and all our customers’ interests, at the core of our long-term decision making.

“We will be building on our strong customer service credentials and delivering our BPA administration in-house to ensure we deliver the highest standards of service.”

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