UK. Transfer volumes could hit £600bn as insurers post strong results
A host of insurers have revealed their first-half 2022 results that show a booming trade in risk transfers, which, by some projections, could hit £600bn over the next decade — though there are fears about a capacity crunch in the sector.
Of those that have released their results so far, Aviva saw bulk annuity sales increase by 15 per cent, rising to £1.9bn, which compares with £1.6bn in H1 2021. Standard Life’s new business long-term cash generation comprised £282mn from its bulk annuities business, significantly up from the £80mn across the same period last year.
Legal & General, meanwhile, saw its profit underpinned by the performance of its annuity portfolio and the strong global pension risk transfer market, leading to new business volumes of £4.4bn — up from £3.1bn in H1 2021, with the £3.7bn in pension risk transfers exceeding the £2bn registered in the same period last year. It said it expected to write £40bn to £50bn of new pension risk transfers in the next five years.
Elsewhere, it was reported that Phoenix Group, which overseas Standard Life, was raising its dividend after “record” results saw its business revenues double to £430m in H1 2022 from £206m in H1 2021. Six bulk purchase annuity deals with pension schemes made for £282mn in new business.
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