UK company pension insurance deals drop 39% in H1: Aon Hewitt
[LONDON] UK bulk annuity company pension deals totalled 2.7 billion pounds (S$4.69 billion) in the first half of 2016, down 39 per cent from a year earlier, consultants Aon Hewitt said on Tuesday.
Pricing of the deals, which involve insurers taking on the risk of company defined benefit, or final salary, pension schemes, is "at most competitive levels seen in recent times relative to gilts-based funding targets", Aon Hewitt said in a statement.
Deal volume was likely to accelerate in the second half, Aon Hewitt added, pointing to deals completed by insurers Legal & General and Pension Insurance Corp in July and August.
Falling UK interest rates have widened UK company pension deficits, providing more incentive for companies to offload the risk of managing their pension schemes.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
HSBC wins £1.3 billion suit over Disney film finance scandal
WTO countries to reboot dispute reform negotiations
Fed’s preferred core inflation gauge rose at a brisk pace in March
Thames water crisis risks £100 billion UK investment plan
Indian central bank issues draft guidelines for web aggregators of loan products
Vietnam National Assembly head resigns amid graft purge