The latest insurer to enter the bulk annuity market has completed a £20m buy-in with an unnamed scheme.
The transaction is the first that Utmost has publicly announced. Isio, the scheme’s adviser on the buy-in, said Utmost’s entry marked “a significant addition to the bulk annuity market”.
Chris Halewood, a client director at Vidett, the professional trustee firm, added: “Working in collaboration with Isio, [lawyers] DLA Piper, the trustees, and scheme sponsor, we quickly recognised the strength of Utmost’s proposition.
“Significant time and planning had gone into their entry into the bulk annuity market, which meant the process ran incredibly smoothly.
“It’s great to see another capable and competitive player in this space, providing options for smaller schemes where choice has been limited.”
Gary Needham, head of bulk annuity business development at Utmost, added: “The speed with which the transaction was completed is testament to the collaborative and pragmatic partnership between all parties involved.”
Utmost is one of two insurers to enter the bulk annuity market this year, after Royal London announced its first deals in March.
Brookfield, a Canadian financial services company, has also expressed an interest in the UK’s pension insurance market.
Sachin Shah, CEO of Brookfield’s Wealth Solutions group, said earlier this year that the company had filed paperwork with UK regulators in preparation for entering the market.
Shah said: “We should be in a position by the end of the year where we’re actually bidding on transactions. Similar to our US strategy, we’ll start small and eventually migrate into the larger transactions.”
Further reading
New kids on the block: Brookfield and Utmost to enter bulk annuity market (8 July 2024)
Competitive insurance market ‘great’ for trustees, says Standard Life (19 July 2024)
Insurers set out plans for infrastructure investment (22 July 2024)
