Lack of £1bn+ deals drives lower buy-in volumes for H1 2026 but leads to exceptional buy-in pricing

Analysis of insurers’ half year 2026 results by LCP shows that a relatively modest £10.2bn of buy-in transactions were completed by UK pension schemes in the first half of 2026, but the second half of the year has started strongly with c£7bn already confirmed. LCP expects total volumes for the year to reach £35-40bn, with final volumes being driven by the timing of some larger transactions in the market in H2.

With fewer large transactions, competition has continued to be intense, helping schemes of all sizes secure exceptional pricing over the period. LCP’s insurer pricing model, which is calibrated against live transaction pricing, shows a 3% price improvement since the start of the year for a typical scheme relative to a gilt benchmark.

With Just’s H1 2026 results released today, LCP’s analysis of the UK bulk annuity market over the first half of the year finds:

• Total H1 2026 volumes reached £10.2bn, c5% higher than H1 2025 (£9.7bn), but materially below the bumper volumes seen in the first half of 2023 and 2024 (£21.1bn and £15.2bn respectively). The more modest transaction volumes in H1 2026 reflected that there was only one transaction over £1bn, an unnamed £1.5bn transaction with L&G).
• Transaction numbers remained high, with 135 completed in H1 2026, the second busiest first half to a year, only surpassed by last year (H1 2025: 160 transactions). Activity continues to be driven primarily by smaller schemes, with sub £100m transactions accounting for around 80% of deals by number – up from c55% five years ago.
• Volumes have picked up over the second half of the year with the £1.65bn full buy-in by L&G with the Wood Pension Plan – the largest disclosed deal in 2026 so far – being part of the c£7bn of volumes confirmed to date in H2 2026.
• Rothesay wrote the largest volumes in H1 2026 at £2.8bn (28% market share) which was split over 14 transactions following the launch of Rothesay’s smaller scheme offering, Radius, earlier this year.  Three other insurers also wrote over £1bn – L&G (£1.9bn, 18% market share), Standard Life (£1.6bn, 16% market share) and Aviva (£1.1bn, 11% market share).  A full breakdown is included below.
• Market capacity continues to increase. On 20 August, Standard Life announced a strategic partnership with CVC, Prudential Financial, Goldman Sachs and MS&AD Insurance Group, raising £2bn of capital to give capacity to target larger transactions. This is on top of the new capacity brought by the acquisitions of PIC by Athora and Just by Brookfield, both of which completed in the first half of 2026. 
• The DB superfund market is moving into its next phase of development. Earlier this month, Clara-Pensions announced a £40m transaction with an unnamed scheme, their second through their Small Scheme Offering following the c£40m transfer with the Videndum DB Pension Scheme earlier this year. The Pensions Regulator has confirmed three new superfunds are in assessment or are expected to be shortly meaning the superfund market could expand to four providers next year.

Charlie Finch, Partner at LCP, commented: “The lack of £1bn+ deals in the first half of 2026 masks the underlying story with the data showing the market remains highly active with 135 transactions completed, the second highest first half ever. We are seeing volumes pick up in the second half of the year putting the market on track to reach around £40bn for the fourth year running.

“Fewer large transactions has created a real opportunity for clients transacting buy-ins this year with exceptional pricing levels, 3% better than at the start of the year. For trustees and sponsors, this presents a pricing opportunity for schemes that wish to pursue a buy-in.  We expect these market dynamics to continue to be favourable but the priority is for schemes to be clear on their objectives and be strategic in their approach to endgame solutions.”

Imogen Cothay, Partner at LCP continued: “This is a market with increasing choice for pension schemes. Nine insurers completed buy-ins below £100m this year, demonstrating that they are investing in dedicated capacity and efficient processes to serve smaller schemes. This increased market accessibility is giving smaller schemes a real opportunity to select the insurer which best meets their objectives, with non-pricing factors increasingly driving decision-making.

“At the same time we’re continuing to see high levels of investment taking place across both the insurer and superfund market, with investors bringing increasing insurance capacity and new superfund entrants.  This is a signal of confidence in the long-term future of the risk transfer market, providing pension scheme trustees with a growing range of credible solutions.”  

Source: Insurance company data. Only buy-ins with a UK pension scheme are included. Volumes reflect gross premiums before allowance for any liabilities being reinsured. Volumes exclude augmentation premiums for existing policies where disclosed. Note that totals may not sum due to rounding.

LCP has been lead adviser on both £1bn+ deals to date in 2026, the £1.65bn buy-in by the Wood Pension Plan and an unnamed £1.5bn buy-in.  In 2025, LCP was lead adviser on £7.8bn of buy-ins giving LCP a 20% market share (by volume) and LCP also advised Stagecoach on their £1.2bn scheme transfer to Aberdeen, part of an innovative run-on strategy.