Half year PRT market update 2025
2025: the story so far
The UK Pension Risk Transfer (PRT) market is poised for another strong year in 2025, following record transaction numbers and £47.8 billion of business secured in 2024. Buy-in and buyout activity continues apace with robust activity across all segments of the market.
The UK government has recently released the first draft of a new Pension Schemes Bill which will aim to make it easier for well-funded DB schemes to release surplus, when ‘safe to do so’.
The developments have led to increased discussion as to whether some trustees may wish to run-on their plans for longer. Conversely, we expect some pension schemes may accelerate their move to buyout so that they can crystallise their surplus. Our view is that it doesn’t need to be a binary choice – a point highlighted in the latest episode of The PRT Pod.
This greater flexibility, coupled with increased choice from an evolving panel of insurers writing PRT business, means that considerations such as an insurer’s track record, member experience offering and ESG credentials are becoming increasingly important. You can read more from us on these areas below, including updates from our Customer Service team - recently honoured as the UK Customer Service Team of the Year at the CCA Global Excellence Awards.
Our new business volumes
During the first half of 2025, we wrote 23 transactions, totalling £3.3 billion of new business premiums in the UK. This compares to 12 transactions and £1.1 billion of premiums received during the first half of 2024.
UK HY bulk annuity sales 2025 | <£100m | £100m-£500m | £500m+ |
|---|---|---|---|
Total size (£m) | 534 | 275 | 2,480 |
Average size of quote (£m) | 30 | 137 | 827 |
Number of transactions | 18 | 2 | 3 |
Buyout, run-on or both?
The release of the draft Pension Schemes Bill, combined with pension scheme funding levels reaching historic highs, is leading to surplus extraction becoming a viable option for many sponsors and trustees.
With deep expertise in both investment and insurance, L&G is uniquely positioned to guide schemes through this evolving landscape.
The PRT Pod: Buyout, run-on or both?
Listen to our latest episode of The PRT Pod where our host Roshni Sakaria welcomes guests Rosie Twist, Origination and Execution Director at L&G and Laura Amin, Partner at LCP to the studio.
Rosie and Laura explore the range of endgame strategies available to DB schemes.
Unlocking DB surplus to strengthen DC outcomes
In June, we launched a pioneering solution that enables DB pension schemes to transfer surplus funds into DC arrangements, including our award-winning Mastertrust.
By facilitating surplus transfers, we help employers reduce ongoing contribution costs or enhance member outcomes in DC schemes, without impacting existing DB liabilities. This solution also supports long-term retirement adequacy and reflects our commitment to joined-up thinking across pension strategies.
Looking after our customers
Our flagship customer event
In June we welcomed 3,000 customers to our customer lounge at BBC Gardeners' World Live. Our customer service team and senior leaders share their reflections in this short video.
Supporting customers with additional needs
At L&G, we’re committed to identifying and supporting our customers who may have a vulnerability with care and flexibility. Watch this video to see how we’re putting this into action across every stage of the retirement journey.
Customer Contact Association Awards
The CCA Global Excellence Awards recognise world-class customer service and professional achievement across all sectors. Since 2021, our Client and Customer Service teams have won a combined total of 18 awards.
In April, we were successful in four awards:
- UK Customer Service Team of the Year
- Learning and Development Team of the Year
- Hybrid Workforce Excellence
- Trainer of the Year
Pensions dashboard
We’re proud to be the first pension provider to connect to the UK’s pensions dashboard ecosystem. This early connection marks a major milestone in improving transparency and accessibility for savers across the country.
By helping people see all their pension information in one place, the dashboard will make it easier for individuals to track their savings, find lost pots, and plan more confidently for retirement.
We’re on track for the government’s full roll-out expected in October 2026, reinforcing our commitment to innovation and better outcomes for pension savers.
Investing for the long-term
Climate and nature report
Our 2024 Climate and nature report sets out our long-term approach to the climate transition to help tackle one of the biggest issues of our time.
Social impact report
This report describes how we seek to address important social issues while also seeking to generate long-term value for our customers, clients, employees, shareholders and other stakeholders.
Recent announcements
£800 million buy-in with the Honda Group UK Pension Scheme
Over £800m secured for smaller pension schemes using L&G Flow
£785 million buy-in for Anglo American pension schemes
£505 million buy-in with the Inchcape Motors Pension Scheme
£370 million buy-in with the TUI Group UK Pension Trust
£1.4 billion buy-in with the Sanofi Pension Scheme
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