Tag Archives: Pricing

Buyouts more affordable but only for a handful of schemes

Buyouts have become more feasible as annuity pricing for non-pensioners has improved, but some experts say many schemes still have a long way to go before being able to afford a buyout or buy-in transaction.GettyImages-99978274.0

Research conducted by consultancy LCP shows that around 1m people had their defined benefit pension insured through a buy-in or buyout, as insurers started to find their feet following the introduction of Solvency II.

More recently, the Cancer Research UK Pension Scheme completed a £250m pensioner buy-in with Canada Life as part of the scheme’s plan to reduce risk, including an introduction last year to liability-driven investing.

Continue Reading “Buyouts more affordable but only for a handful of schemes” at Pensions Expert News

Bulk annuity pricing ‘less predictable’ due to volatility and Solvency II

Short-term bulk annuity pricing has become less predictable due to volatile market conditions and insurers adjusting to Solvency II, according to Aon Hewitt.

The consultant’s bulk annuityUNPREDICTABLE1 market update for January 2016 highlighted an expected increase in the cost for bulk annuities covering members who had not yet retired.

However, material change was not expected in the best available pricing for pensioners as a result of Solvency II – the new EU-wide capital regime for insurers.

Aon Hewitt ‎risk settlement adviser Dominic Grimley pointed out many providers had already planned their market models in the medical underwriting market and that pricing had settled down accordingly, adding: “Pricing for some insurers may have gone up slightly but the best pricing is very similar to where it was last year and we’ve not seeing any shock results from the first auctions this year post-Solvency II.”

Continue Reading ” Bulk annuity pricing ‘less predictable’ due to volatility and Solvency II” at Professional Pensions