The de-risking market is on track to hit record volumes this year with £45bn to £60bn of transactions according to pension consultants LCP.
It is prediction as many as 15 transactions at the £1bn-plus mark during the year, and has estimated that around 1,000 schemes are already fully funded on buy-outs, and force no let-up in activity in the second half of this year.
This comes on the back of several years of strong growth amid better funding of DB schemes and more favourable economic conditions for buy outs and bulk purchase annuities.
Commenting on these figures Standard Life’s managing director of defined benefit solutions Kunal Sood says: “”The BPA market is living up to the expectations set earlier in the year, with £45bn+ looking very achievable. Defined benefit funding schemes have generally benefited from a combination of factors over the last year, including a rise in gilt yields, slowing longevity improvements, an increase technical provisions and sponsors stepping up deficit funding.
“All of this has led to a surge in market demand, and at Standard Life, we have been actively engaging in a number of discussions to help schemes achieve the best solutions for their members.”
