The UK bulk purchase annuity (BPA) market 'surged' last year, following a record number of transactions, according to Aon's UK Risk Settlement Market Update.

It revealed that 293 deals were completed, surpassing the previous record of 227 from 2023.

In particular, Aon showed that 160 deals were completed in the year's second half, over one deal per working day across those six months.

Consequently, the second half of 2024 witnessed the highest volumes transacted in any six months, with £32.5bn written.

Aon said this increase was partially driven by streamlined offerings and increased insurer competition, particularly in the sub-£100m segment.

However, the primary reason for the surge in volumes in the second half of 2024 was
the record number of buy-ins of over £1bn completed in any half year.

Fourteen large deals over 2024 totalled £26bn and were written by
six different insurers.

This compared to twelve £1bn-plus deals in 2023, which amounted to £29bn.

Just Group was responsible for over 40 per cent of these deals, including a £1.8bn transaction, while Aviva and other insurers also set new records for deal volumes.

Insurers like Clara Pensions also expanded their superfund activity, completing significant transactions like the £600m Debenhams Retirement Scheme and £230m Wates Pension Fund deal, highlighting increasing interest in superfund solutions for schemes with active sponsors.

Meanwhile, the longevity swap market experienced lower volumes in 2024 (£5.8bn) but is expected to exceed £15bn by 2025, with a focus on pensioner and non-pensioner liabilities, Aon has suggested.

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