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Intense insurer competition drives record buy-in pricing for DB pension schemes – LCP

Buy-in volumes reached £38.2bn in 2025, with buy-in pricing reaching its most competitive levels in early 2026 and continuing into Q2.

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Intense competition among insurers is driving record buy-in pricing for UK defined benefit (DB) pension schemes, according to LCP’s latest pension risk transfer (PRT) market update. 

LCP found that strong insurer capacity and newer entrants have increased competition for deals of all sizes, with buy-in pricing reaching its most competitive levels in early 2026 and continuing into Q2.

Buy-in volumes reached £38.2bn in 2025. 

LCP expects volumes in 2026 to remain high, depending on whether certain £1bn plus buy-ins transact this year or next. 

Insurer capacity is expected to meet demand, with high competition continuing for the rest of the year.

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Newer insurers, including Royal London, Prudential and Utmost, have grown their combined market share from 3% in 2024 to 9% in 2025. 

Together with Blumont, they completed £3.4bn across 46 transactions in 2025, compared to £1.5bn across nine transactions in 2024. 

This contributed to a 23% rise in transaction numbers, from 298 in 2024 to 367 in 2025.

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All insurers wrote sub-£100m deals in 2025, with streamlined offerings supporting expanded capacity.

Charlie Finch, partner at LCP, said: “Twenty years on from the first buy-in, the UK pension risk transfer market is seeing record levels of competition and choice. 

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“Strong insurer capacity and heightened competition have driven the attractiveness of buy-in pricing for LCP clients to unprecedented levels in early 2026.

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“For well-prepared schemes, the current market presents a compelling pricing opportunity and gives leverage to negotiate bespoke terms for the benefit of members.”

Ruth Ward, partner at LCP, said: “Competition is no longer limited to the largest transactions, with smaller schemes benefiting from a wider range of insurers actively participating in this segment and improved access to the market. For trustees and sponsors, that creates a real opportunity.

“Whilst market conditions are favourable, it’s important not to lose sight of the fact that hundreds of schemes are now seeking buy-in quotations. 

“Good quality preparation is therefore critical to stand out from the crowd, achieve strong insurer engagement and ensure efficient post-transaction processes.”

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