More deals, but smaller volumes
In the first half of 2025, 155 buy-in and buy-out transactions were completed. This represents an increase of around 20% over the 133 deals recorded in the same period in 2024. Yet despite this increase, total deal volume fell to £9.7bn, the lowest first-half figure since 2021, largely reflecting the absence of large-ticket transactions. Only one deal exceeding £1bn was completed in H1 2025, an unnamed £1.1bn buy-in with Legal & General. The market continues to skew towards smaller transactions, with more than 85% of all H1 deals valued below £100m, compared with around 78% in 2024 and about 70% in prior years. Analysts have noted that the lower H1 volume reflects deal timing rather than weaker demand, with many schemes continuing to progress transactions towards completion later in the year.
Momentum building in the second half
Indeed, market momentum appears to be accelerating in H2. Approximately £8bn of deals have already been announced, including two transactions exceeding £1bn, such as Rolls-Royce’s £4.3bn buy-in. Activity is expected to accelerate further through the remainder of the year, particularly among larger schemes seeking to lock in favourable pricing conditions.
Market share and competition hotting up
Legal & General led the market in H1 2025 with around £3.3bn of transactions, representing a 34% share. Aviva followed with 21%, while Just and Pension Insurance Corporation (PIC) accounted for 17% and 11%, respectively. New entrants have also started to make their mark, collectively writing close to £1bn in their first half of trading. Market consolidation continues to reshape the landscape, as insurers seek scale advantages and operational efficiencies to meet growing demand. With competition intensifying, insurers are under growing pressure to innovate on deal structures, product terms and servicing to differentiate themselves.
Longevity swaps surge
Longevity risk transfer has surged alongside BPA activity. Longevity swap volumes rose sharply to £15.1bn in H1 2025, compared with just £0.8bn in the same period a year earlier. This reflects increasing appetite among schemes to manage risk dynamically, especially as funding positions improve and the focus shifts from solvency to long-term sustainability. Much of this growth reflects large transactions by multinational sponsors, underlining how longevity swaps are now an integral part of wider de-risking strategies.
The BPA outlook for 2025 and beyond
Market analysts anticipate a “very busy” second half of the year, driven by pent-up demand among large schemes and the pipeline of transactions already in progress. While overall volume may not surpass 2023’s record, activity levels remain historically high and are expected to stay strong into 2026. Market commentators point to record levels of engagement between schemes and insurers, alongside growing insurer capacity and innovation expected to support continued high activity into next year.
Competitive pressures among insurers are also growing. Firms are being urged to innovate on pricing, product design and servicing to stand out in an increasingly crowded market. Differentiation through client experience, execution speed and flexibility on residual risks is expected to become a defining feature of the next phase of BPA market evolution. As capacity expands, competition on pricing and execution speed is expected to intensify further.
Luke Carter, Regulatory Consultant at Equiniti said:
The BPA market continues to demonstrate remarkable resilience. Even with fewer large deals, activity remains strong as more schemes reach buy-in or buy-out readiness. The growing number of smaller transactions highlights the depth of demand across the market, and we expect continued innovation as insurers compete on flexibility, service, and risk management. With increasing regulatory oversight and appetite for fewer larger operators we expect the market to develop further as schemes consolidate, though we may see a pause as scheme sponsors await details on any surplus sharing regulations”
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