Bulk annuity market: Q2 2026 trustee update

Market volatility

Global equities (GBP hedged) delivered negative returns of approximately 2% over Q1, as heightened volatility followed the escalation of the Iran conflict and the associated energy shock. Long dated nominal gilt yields rose sharply (c.35bps over the quarter) as inflation concerns weighed on government bonds. Investment grade credit spreads widened modestly, by around 10–15bps, reflecting increased risk aversion, though spreads remain relatively tight. At the time of writing, equities and gilts are experiencing a relief rally amid hopes of a fragile truce, though sentiment remains cautious.

Industry news

• Insurer acquisitions - regulatory approval for Athora Holding Limited’s acquisition of Pension Insurance Corporation was received on 6 March 2026, closely followed by Brookfield Wealth Solutions’ acquisition of Just Group on 1 April 2026. JAB’s acquisition of Utmost is expected to follow later in the year.
• Member experience - schemes are increasingly focussing on the member journey and looking to ensure member experience is enhanced as part of the transition to buyout, which is driving more innovation and investment from the insurers, driving up standards across the market.

XPS Catalyst

XPS Catalyst is an all-in-one solution to ensure best possible outcome for members. Designed exclusively for schemes under £15 million, XPS Catalyst brings together expertise in insurance, risk settlement, actuarial, investment, and administration to deliver a fast, streamlined route to buyout.

Outlook for 2026

XPS market intelligence - expectations for the year are buoyant with XPS estimating more than £40bn of deal volumes, a material increase compared to 2025. On the supply side, we expect to see more insurer capacity which will continue to create opportunities for smaller to mid-sized schemes where demand and competition is expected to remain strong.

XPS’s experience remains that well-prepared schemes with well thought-out strategies continue to receive attractive pricing regardless of size, and for smaller to mid-sized schemes there is currently an increased level of competition among insurers driving attractive pricing.