Marvin OnumonuInsurer volumes reached £45bn, with record-breaking transactions expected to continue in 2025, according to Hymans Robertson’s annual report.
The market saw significant growth from both small and large schemes, with 10 transactions over £1bn.
The alternative risk transfer market also grew, with two superfund deals in 2024.
Lara Desay, partner and head of risk transfer at Hymans Robertson, said: “2025 looks set to be a period of huge growth for the risk transfer market with the whole market – both large and small schemes – in a boom period.
“As in previous years, large schemes have dominated the market with at least six insurers completing transactions greater than £1bn.”
Desay said that larger schemes face challenges with illiquid assets needing time and patience to manage.
Desay added: “Allowing ample time and attention to consider operational and administrative aspects of a transaction is also key.”
The superfund market has also seen growth, with transactions like Debenhams’ deal leading the way.
Clara is expected to continue building capacity, creating a steady stream of transactions in 2025.
She said: “The key theme for this year has been the increased capability from insurers and alternative risk transfer providers.
“Headlines of broken records for the industry confirm that risk transfer remains an attractive derisking tool and this demand is only set to continue.
“We believe that buy-in volumes will remain, or exceed, the £40bn mark for at least the next five years.”
She added: “To meet such demand the Hymans risk transfer team has grown by a fifth, with four senior members of the team having previously held lead roles on the insurer side.
“Our team has been involved in some of the largest buy-in deals of the year, with a groundbreaking and central role in two of the largest transactions of the year.
“We look forward to seeing what 2025 will bring at such a pertinent time for the risk transfer market.”
