Brookfield set to join the UK bulk annuity market, bringing additional competition and favourable pricing - LCP
Pensions & benefits Pension risk transfer
Today, Brookfield Wealth Solutions has announced that it is entering the UK bulk annuity market to provide buy-in insurance solutions to defined benefit pension schemes under the Blumont Annuity UK brand, with operations expected to begin later in March following final regulatory approvals. Blumont will be the fourth new entrant insurer in 18 months after M&G, Royal London and Utmost. Blumont Annuity Company UK Limited is a brand-new insurance company, whereas the other new entrant insurers are offering bulk annuities through existing insurance companies. The chart below shows the history of new entrants and exits.
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. Trading as Blumont, they will be the fourth new entrant insurer to the market in 18 months when they launch their operations later this month, taking the market to a record 11 insurers quoting for business. They will also be the first new bulk annuity insurer to be authorised since Rothesay in 2007. 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 welcome 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.
Charlie Finch Partner in LCP's pension risk transfer practice
