The latest report from Hymans Robertson shows that while block annuity transaction volumes fell by more than 20% year-on-year in 2025, buy transaction volume worth less than £100 million increased by more than 30%.
The pensions and financial services consultancy revealed that buying volume in 2025 totaled £38.2 billion, down more than 20% from £47.8 billion in 2024.
The total number of transactions reached 370, a new market record and up more than 20% from 299 in 2024, driven almost entirely by smaller pension schemes.
While the number of deals over £100m was essentially the same as last year, the number of deals under £100m increased by more than 30%.
While this year has been characterized by a surge in smaller acquisitions, larger planned de-risking activities remain important. Four insurers completed more than £1 billion of transactions totaling £8 billion, with longevity swaps taking on liabilities of more than £18 billion.
Competition for deals of all sizes was fierce across the market, with 11 insurers actively participating throughout the year and a growing number of insurers taking part in acquisitions under £100m, helping to drive competitive pricing and innovation.
Hymans Robertson also noted that 2025 will see growth in the alternative risk transfer sector, with TPT announcing plans to launch a super fund.
Michael Abramson, partner and risk transfer specialist at Hymans Robertson, said: “Large annuity deal volumes fell by more than 20% year-on-year in 2025. While this decline will disappoint some insurers, it masks an increasing trend in smaller pension schemes to de-risk, with the number of deals under £100m actually increasing by more than 30% during the year. This is a result of increased levels of pension scheme funding and fierce competition from insurers.
“Recent insurance company M&A activity has reduced the number of market participants from 11 to 10, but has also brought new capital and asset sourcing capabilities to the market. We expect this will create an excess supply of pension plans relative to demand, which may continue to provide attractive pricing opportunities for plans seeking insurance. In addition to price competition, insurance companies are continuing to invest in their operational and management capabilities, with a focus on delivering high-quality customer service and positive member experiences.”
