The price is tight: UK insurers battle for buyouts
Insurers get creative as traditional pension buyout levers come under pressure
The economics of UK insurance buyouts have arguably stopped adding up so nicely. But providers seem to be continuing as if nothing’s changed.
Buyout pricing used to be largely based on an insurer’s ability to invest the assets it receives from pension funds into higher-yielding corporate bonds to meet the fund’s long-term liabilities. Insurers haven’t been able to do this since the end of 2023.
The
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