UK Pension Risk Transfer market sees huge growth - what will it mean for investments?

As the UK Pension Risk Transfer (PRT) market saw new records in growth with 299 transactions in the UK in 2024. The total included 14 by-ins of over £1 billion, as both large and small pensions saw growth, according to a new report from L&G, which was based on global tracking PRT monitors reports.

PRT’s are being monitored as predictions highlight it as being in its transformative stages, with more companies looking to transfer pensions to insurance companies in order to mitigate financial risks. Reports show focus on the US and UK as they lead the way in boosting PRT markets – the rest of the world shows signs of catching up.

“This momentum is driven by strong funding levels, regulatory clarity, and increasing sponsor engagement,” said Andrew Kail, CEO, Institutional Retirement, L&G. “In the UK, the maturity of the market is reflected in both the scale and number of transactions completed each year.”

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