The UK superannuation market has recorded its busiest year to date in 2025, according to Aon, a global professional services firm that provides advice and solutions on risk, retirement and health.
Aon suggests that the high level of activity is the strengthening of competition, especially in small transactions, as well as the continued demand for insurance in the market. While the overall numbers are down compared to recent years, Aon indicates that demand and commitment remain strong.
Aon reports that 367 more annuity deals have been completed in 2025, surpassing the previous record of 293 in 2024 and 227 in 2023. However, Aon notes that the total volumes have reached £38.2 billion, less than the £49.1 billion recorded in 2023 and the £47.2 billion that advises on 20 more. more than 25% of the total gross income during the year.
Aon points to the continued shift to smaller sales as a defining feature of the market. It highlights that 83% of all transactions in 2025 were under £100 million, with a very strong growth of companies under 10 million, which rose to 119 compared to 58 in 2023. According to Aon, this trend has led to a significant reduction in the size of standard transactions, which fell in half over the past two years.
In his analysis, Aon emphasizes that competition in the segment under 100 million has increased significantly. It reports that more insurers are already quoting on smaller deals, with ten insurers completing deals of less than £50 million by 2025, compared to eight last year. At the same time, Aon notes that eight insurers have each written a business of more than 1 billion, showing that the potential for large transactions is still there.
Aon reports that the second half of 2025 was the most active six-month period on record in terms of transaction volume, with 207 deals completed and $28.5 billion in value. Although this was lower than the 32.6 billion recorded in the second half of 2024, Aon considers the level of activity to be indicative of a stable market momentum. It also notes that eight transactions in excess of £1 billion were completed during the year, demonstrating the continued need for large risk transfers.
From an insurance point of view, Aon says that Aviva, Just Group and Legal & General together are responsible for 71% of all the deals completed in 2025. Aon highlights that Legal & General has completed the biggest transaction of the year, purchasing for £ 4.6 billion, while new players such as Royal London and M & G continue to expand their presence and increase the size of transactions.
Aon also reports that the long-term exchange market has recorded its busiest year since 2020, with $18.8 billion in publicly traded shares. It notes that this is more than the combined total seen in 2023 and 2024. Aon acted as the main adviser on the biggest long-term change of the year, the £6 billion transaction for the BBC Pension Scheme, and the growth of this segment on attractive prices, improved access for medium-sized projects and the increased need to prevent debts.
Aon also points to ongoing development in the superfund market, where hybrid vehicles are becoming an integral part of the final plan. While performance in 2025 was weaker than expected, Aon explains that improved financing conditions have helped some projects move to outright purchases. However, Aon expects the market to grow as regulatory clarity improves and new entrants increase competition.
Looking ahead, Aon expects total annuity revenue to exceed $40 billion by 2026, supported by a strong pipeline of deals and continued insurance appetite. It highlights that projects that are well prepared and able to execute quickly will be better placed to secure good prices in an increasingly competitive environment.
Overall, Aon’s analysis suggests that the UK superannuation market is still very active, with changes to smaller transactions and greater participation by insurers continuing to shape its development.
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