Recent years have seen sustained record levels of pension de-risking in both the United Kingdom and United States. In 2023 alone, those two countries transacted nearly $110bn in risk transfer deals – and the trend is spreading. Pension reform in the Netherlands will result in opportunities for pension schemes to de-risk. While PFI anticipates continued growth in the established US and UK pension risk transfer markets, the nature of these transactions is shifting in both regions; buy-ins, long a staple in UK arrangements, are gaining ground in the US, while in the UK, as funded status is rising, firms are shifting to buyouts. Global markets currently offer attractive pricing, ample insurer and reinsurer capacity, and high funded status providing schemes with an opportunity to capitalise on favourable conditions for risk transfer.
Dirk Popielas - Managing Partner, Co-Founder and Chief Investment Officer, DBR Holding