S4 Ep. 11 The DB Pensions Buy-out Boom

Investment Uncut

This week we’re discussing a particularly booming area of the markets in 2023: the market for buy-outs of DB pension funds by insurers. We’re speaking to LCP’s Catherine Hopper who thinks that 2023 will see record volumes in the “bulk annuity” market. We discuss the key changes in the funded status of UK DB schemes over the last year and what this has meant for their buy-out deficit, we cover the supply/demand dynamic in the market and what this means for trustees looking to do a transaction for their scheme. We also discuss the implications of potential future changes, such as solvency 2 regulation and the potential entry of new participants into the market. We think anyone involved in DB pensions will find this a worthwhile listen on one of the big themes of the moment.