Webinars
Overcoming the challenging issues in a buy-in/buy-out transaction
17 Jun 2021
Risk Transfer
One of the biggest concerns for scheme trustees is knowing how and when to transfer risk to an insurance company.
No matter where you are on your scheme’s journey, we can guide you to the solution which best meets your needs and delivers your members’ benefits with certainty.
How we can help
We can help you understand the risks to your scheme’s funding position and help you prioritise what action to take.
If risk transfer is the right choice for you, then you can be confident that our deep market knowledge will help you obtain the best value from your transaction.
The ultimate goal for many DB pension schemes is to transfer their risk to an insurance company. Over the next 5-10 years, growth in appetite from DB pension schemes to complete bulk annuity transactions means there will be times when insurers cannot keep pace with pension scheme demand. Rather than sitting tight, we can help you take proactive steps now to capture opportunities in stages. Doing so will also put you in a stronger position for when the time comes to carry out a full buy-out.
In addition to the traditional options of buy-ins, buy-outs and longevity swaps, a number of new risk transfer options have become available to DB pension schemes in recent years. Click here to see a summary of all the options currently available to you.
Market-leading insurer insight
The buy-in and buy-out market is currently busy with all eight insurers being more selective on transactions. Now, more than ever, understanding the insurance market is key. Hymans Robertson:
- Has an excellent reputation amongst insurers for running efficient, well managed and well executed transactions.
- Advises 7 out of 8 insurers and 90% of reinsurers on longevity pricing, investments, reserving and other aspects of their business.
- Has great insights into insurer mind-set through Michael Abramson's experience in leading the bulk annuity business and large transactions at Prudential and Legal & General
- We have built strong relationships with senior individuals at each insurer to accelerate signoff on best possible price.
Hymans Robertson's expertise was instrumental in delivering this excellent result for the Fund.
Helen Clatworthy - Chair of the Trustee of the Fund, Imperial Brands, following a £1.8bn buy-in.
During 2021 we have led on buy-ins and buy-outs:
expected to be c.20% of the market
ranging from £50m-£1.8bn in size
covering £2bn of deferred member liabilities
transactions with FTSE100 sponsors
new risk transfer clients
5x larger footprint in the risk transfer market than our DB market share
welcomed 1,200 attendees at 8 webinars
added 6 new team members
advised on every risk transfer structure
highly commended Risk Reduction Adviser and Derisking Consultant of the Year
Download our 2022 Risk Transfer Report
Our sixth annual risk transfer report provides comprehensive analysis of the pensions bulk annuity market.
Risk Transfer Transactions
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The information contained does not constitute advice and should not be considered a substitute for specific advice.