The risk transfer market saw the lowest DB transactions in H1 since 2021 of £9.8bn across 161 deals in the first half of 2025 but volumes in the second half are catching up, according to Hymans Robertson.
According to Hymans, smaller schemes continued to dominate activity, with 139 of these transactions involving schemes of £100m or less. The firm says streamlined processes and more insurer options are making it easier and faster for schemes of all sizes to complete transactions.
Hymans notes that trustees are increasingly focused on how members are supported. With many schemes preparing to move from buy-in to full buy-out, trustees are looking beyond price alone. Strong funding and greater insurer competition are allowing them to prioritise tailored benefits, digital tools and high-quality service that match or exceed current standards.
Hymans Robertson head of risk transfer Lara Desay says: “The first half of 2025 has shown that the risk transfer market remains resilient. While volumes have been lower, the level of engagement, particularly among smaller schemes, has been encouraging, and pricing has remained highly competitive. There’s been continued innovation and competition in the risk transfer space, with new entrants and evolving deal structures helping to meet demand.
“What’s clear is that member experience is now front and centre. Schemes are rightly prioritising how members are supported through the buy-out journey, and insurers are responding with more innovative and service-led approaches. We’re seeing a shift in expectations, where schemes are looking beyond transaction execution and focusing on long-term service quality and member outcomes. As the market matures, member-centricity and operational resilience will be key to successful transactions in the remainder of 2025 and beyond.
“The market’s momentum in the second half of 2025 reflects not just sustained demand from pension schemes, but also a clear step-change in insurer capacity. “This is enabling trustees to prioritise member outcomes and demanding more tailored benefit structures, better digital engagement, and continuity of service. At the same time, innovation in alternative risk transfer is expanding the toolkit for schemes of all sizes. This offers new ways to secure long-term member security without compromising on governance or standards.
“Looking ahead, we expect the second half of 2025 to be particularly active. Several large transactions have already completed since 30 June, and the pipeline is strong. The market is evolving quickly, and schemes that engage early, prepare thoroughly, and prioritise member outcomes will be best placed to secure successful deals in an increasingly competitive environment.”