Pricing in the UK bulk annuity market returns to historical norms

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Bulk purchase annuity (BPA) pricing narrowed in 2010, following a spike in 2009 due to an increased perception of the riskiness of BPA business and a reduction in the level of market supply, according to John Pollock, executive director at London-based insurer Legal & General.

Pollock, head of Legal & General's risk business – which encompasses annuities; individual and group protection businesses; housing network; and general insurance – says historically firms established a best estimate of a

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