Hymans Robertson research: Buoyant return for pension scheme risk transfer market

The pension scheme risk transfer market has seen its busiest quarter since the credit crisis of 2008, with £1.4 billion deals completed, according to research by Hymans Robertson.

The Managing pension scheme risk report Q2 2011 revealed that the second quarter of 2011 saw five providers each completing in excess of £150 million of risk transfer transactions.

The twelve months to 30 June 2011 saw £3.6 billion of risk transfer deals, the vast majority of which were related to buy-ins.

Patrick Bloomfield, partner and head of trustee solutions at Hymans Robertson, said: “The second quarter saw a buoyant return to activity in the pension risk transfer market after a quieter start to the year.

“The entry of new providers also indicates that banks and insurers believe the marketplace will continue to develop strongly.

“We are likely to see further strong activity across the remainder of the year, particularly with schemes pursuing longevity swaps, several of which are already in the pipeline. 

“Schemes looking to pursue this route will need to ensure they have accurate data on their members’ life expectancy though, in order to ensure they receive a well-priced, suitable arrangement.”

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