The pension risk transfer market shifted towards smaller schemes in 2025, with the number of buy-ins worth less than £100m increasing by over 30 per cent during the year, a report from Hymans Robertson has shown.

The 370 buy-ins last year was a new record-high for the market, an increase of more than 20 per cent compared to the 299 deals in 2024, driven almost entirely by smaller pension schemes.

Although the number of deals worth more than £100m remained broadly stable year-on-year, the number of sub-£100m transactions rose by over 30 per cent.

Despite this, the total value of buy-in deals in 2025 fell by over 20 per cent year-on-year, from £47.8bn in 2024 to £38.2bn.

Hymans Robertson noted that while the year was characterised by an increase in smaller buy-in transactions, larger scheme de-risking activity “remained significant”.

Four insurers completed deals worth more than £1bn, covering £8bn overall, while more than £18bn of liabilities were covered by longevity swaps.

Market competition was strong for schemes of all sizes, with 11 insurers actively participating last year, and an increasing number participating in buy-ins below £100m, helping drive competitive pricing and innovation in the market.

“2025 saw a more than 20 per cent fall in bulk annuity volumes year-on-year,” said Hymans Robertson partner and risk transfer specialist, Michael Abramson.

“While this drop will have left some insurers disappointed, it hides a growing de-risking trend in smaller pension schemes, with the number of deals less than £100m actually increasing by more than 30 per cent during the year.

“This is a result of both improved pension scheme funding levels and intense insurer competition.

“Recent insurer M&A activity has reduced the number of market participants from 11 to 10, but it has also brought new capital and asset sourcing capabilities into the market.

“We expect that this will bring excess supply relative to demand from pension schemes, which is likely to continue to provide attractive pricing opportunities for schemes that are seeking to insure.

“In addition to competing on price, insurers are continuing to invest in their operational and administrative capabilities, with a focus on offering a high-quality of customer service and a positive member experience.”

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