Brookfield Wealth Solutions Enters UK Pension Insurance Market
LONDON, March 3 (Reuters) – Brookfield Wealth Solutions (BNT.N) announced Monday its entry into the UK pension insurance market, a move aimed at benefiting from the considerable demand from companies seeking to transfer their pension scheme liabilities to insurers. This represents a notable new entrant into the competitive UK pension insurance sector, backed by Brookfield’s substantial financial resources.
Brookfield Wealth Solutions, which was established in 2021 as a spin-off from Brookfield Corporation (BN.TO), anticipates commencing operations later this quarter under the Blumont Annuity UK brand, according to a statement.
Bulk annuities function as a type of insurance where a company’s pension plan transfers its liabilities to an insurer. Reuters reported in 2023 that Brookfield had been evaluating entry into the UK market and exploring potential acquisitions within the sector to gain access to bulk annuities.
The bulk annuity market has experienced growth in recent years, though more recently, the pace has stabilized. In 2024, British pension insurance transactions reached a total of 45 billion pounds. This year, 40 to 50 billion pounds in deals are anticipated, alongside the arrival of new entrants, as indicated by a recent report from the advisor LCP.
Leading life insurers, like Aviva (AV.L), Legal & General (LGEN.L), and Phoenix (PHNX.L), have broadened their operations in recent years within this profitable but highly competitive market. These companies are benefiting from increasing opportunities as businesses aim to remove pension scheme risks from their balance sheets.
“With over $140 billion in total assets, we are eager to meet the retirement needs of UK pensioners over the long term,” stated Sachin Shah, CEO of Brookfield Wealth Solutions. “Our group-wide objective is to provide lasting financial security for our policyholders and clients, supported by strong, well-capitalized companies that maintain high-quality investment portfolios,” Shah added in the statement.
The launch is pending the fulfillment of final regulatory approvals, as indicated by Brookfield.
Reporting by Tommy Reggiori Wilkes, Editing by Iain Withers
