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Wood: founder of Paternoster, which has been put up for sale

Buyout market signals return to halcyon days

The bulk annuity market looks set to generate £15bn worth of business in 2010, according to research from Pensions Management.

Despite the relatively quiet start to the year, buyout and buy-in providers predicted transaction levels would return to the heyday of 2008, with a surge of deals expected by the end of the year.

However, cost-cutting led Prudential not to write any new bulk annuity business in the first half of 2010, citing a “disciplined approach of only participating in [bulk annuity] transactions that meet strict return on capital requirements” in its Q2 report.

Finch: move hurts small schemes

Equality inflates costs

Plans to equalise guaranteed minimum pensions (GMPs) will “significantly” increase the cost of buyouts, forcing some smaller schemes out of the market, research shows.

Paternoster’s BMW deal first since move to product design

Paternoster has announced a £2bn longevity swap with BMW – its first deal since switching its business model from insurance to product design.

Berkshire fund confirms £1bn longevity swap deal

Insurer Swiss Re has confirmed a groundbreaking deal with the Royal Berkshire Pension Fund to protect against longevity risk.

Hayes: unsure how Solvency II will impact on insurers

Cheaper derisking strategies revive a flagging market

Risk transfer business levels are next year tipped to exceed those of 2008, according to respondents to PM’s buyout/buy-in survey.

Longevity hedging booms as large firms turn to DIY derisking strategies

DIY buy-in and longevity hedging deals accounted for nearly double the £1.5bn traditional buyout and buy-in business for the first half of 2009, according to Hymans Robertson.

Finch: the birth of the longevity protection market is well-timed

Competitive longevity swaps lure larger firms

Competition among longevity swap providers is forcing down prices and has attracted six FTSE 100 companies to obtain quotations.

Buyout and Derisking Conference a success

The inaugural Buyout and Derisking Conference brought together trustees, scheme managers, finance directors, consultants and politicians to explore solutions that help defined benefit (DB) schemes make their members’ pensions more secure and reduce their impact on company balance sheets.

Staveley-Wadham: foresees greater use of longevity products

2009 heralds ‘son of buy-in’

Buy-in deals are set to eclipse buyout deals in 2009, industry experts have predicted, though uncertainty still surrounds compensation in the event of insurer defaults.

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