Aon and XPS split on H1 2026 bulk annuity volumes
Aon expects the first half to have cleared £10bn, while XPS put the same half below that level in July.
Aon expects UK bulk annuity volumes for the first six months of 2026 to exceed £10bn, which it says would be more than the £9.7bn of transactions completed in the first half of 2025, in comments from Sam Matto-Willey, head of insurer due diligence in Aon’s Risk Settlement Group, carried by Actuarial Post.
XPS Group, writing in July, estimated the same half at below £10bn. XPS expects full-year volumes to be lower than in previous years, at around £35Bn, dependent on the timing of larger transactions now in insurer pipelines. Analysis: the two figures are not published on a stated common basis, so part of the gap may be scope rather than activity.
Legal & General wrote £2.0bn across 11 UK PRT schemes in the first half and has since completed or secured exclusivity on a further seven transactions totalling c.£3.5bn. Legal & General now expects 2026 market volumes to fall short of its previously anticipated £50bn, with some larger transactions likely to move into 2027. Aviva reported BPA volumes of £1.1bn against £2.0bn a year earlier, with IRRs of 18%. Standard Life’s Retirement Solutions arm wrote £1.6 billion of PRT business against £0.3 billion a year earlier, and expects new business economics to be lower in the second half. Insurers have reported a further £6.4bn of transactions signed or in exclusivity since the end of June, Aon said.
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