UK insurers set to take on more company pension schemes
Insurers expect more UK companies to offload their pension schemes to them after surging government bond yields increased the appeal of such deals and the market turmoil underlined the risks in managing retirement plans.
Over the past two decades, the UK has seen the emergence of the so-called bulk annuity market, where specialist insurers take over defined-benefit pension schemes.
The market already had enjoyed fresh momentum earlier this year from the increase in government bond yields as inflation and interest rates rise. Rising yields reduce the scale of the long-term liabilities pension funds have to meet, making it more attractive for insurers to take on the responsibility for the schemes.
This story originally appeared on: Financial Times - Author:Robert Wright
