Aviva Launches Major Annuities Offensive with Record Business

According to consultant XPS, the British insurer Aviva has completed an unprecedented deal in the bulk annuity sector. With a volume of 1.5 billion pounds, the company is strengthening its market position by taking over the pension obligations of the Michelin Pension and Life Assurance Plan. For Aviva, this is the largest transaction of its kind and at the same time the most significant deal announced on the UK market this year. Bulk annuities, where companies transfer their defined benefit or final salary pension plans to insurers, are gaining increasing popularity. More and more companies are taking this step to remove the risks associated with pension obligations from their balance sheets. This development demonstrates how businesses are seeking security and predictability in their operations. Although the volume of bulk annuity transactions this year is expected to be just below the record of 49 billion pounds set in 2023, the market remains lively. Consultants from LCP emphasize in their latest report that demand remains strong despite a slight decrease in overall volumes, and high-value transactions are still expected. This impressively shows how dynamic and attractive the bulk annuity business has become for insurers and companies alike.