Canadian finance company Brookfield Wealth Solutions has become the fourth new entrant to the bulk annuity market in 18 months.
The company will trade in this country under the Blumont Annuity UK brand, with operations expected to begin later this month following final regulatory approvals.
While its decision to enter the UK bulk annuity market follows similar moves by M&G, Royal London and Utmost in recent months, Blumont is the only provider that is a new insurance provider in the UK — and is the first new bulk annuity insurer to be authorised since Rothesay in 2007.
The company has been operating in both the US and Canadian markets for a number of years and is expected to provide additional capacity for the market. Once Blumont is fully operational there will be a record 11 insurers operating in this market.
Brookfield Wealth Solutions which was spun out of Brookfield Corporation four years ago. It already has a presence in the UK market, with over £63bn of assets under management across infrastructure, real estate and renewable power.
LCP partner Charlie Finch says: “Brookfield’s entry to the UK buy-in market is welcome news for schemes looking to insure some or all of their pension liabilities as part of their long-term strategy.
“We expect Blumont to have deep capacity, building on their track record in the US and Canadian markets, with significant capital to deploy.
“This will bring additional competition to the UK marketplace and help to continue the favourable buy-in pricing our clients have benefited from over H2 2024 and 2025 to date.”
Brookfield Wealth Solutions CEO, Sachin Shah, says: “We are thrilled to launch Brookfield Wealth Solutions in the UK. With more than $140bn in total assets, we look forward to serving the retirement needs of UK pensioners for the long term.
“Our group-wide commitment is to provide long-term financial security for our policyholders and clients, serviced by strong, well capitalised companies with high quality investment portfolios.
“The PRA and the FCA have been efficient, professional and highly constructive during our approval process, and we look forward to working further with them in the future.”
