24
buy-in transactions
21,000
members’ benefits insured
£2.4bn
premium received
Royal London’s bulk annuity policy is for trustees of defined benefit pension schemes that are seeking to secure their members’ benefits with an insurer.
Under a ‘buy-in’ policy, in exchange for a premium, we’ll take on the risks associated with how long your members live, how well investments perform and how inflation changes. We’ll then work with you and your advisers in preparing for ‘buyout’, at which point each member of your pension scheme will receive an individual annuity policy from Royal London.
Royal London is the UK's largest mutual life, pensions and investment company1.
Over the past 165 years, we've grown into a large, diversified organisation with £199 billion of assets under management and 8.5 million policies in force2. We’re financially strong and have a great track record of taking care of our policyholders.
We’re a long-term business for long-term promises and our commitment to the bulk annuity market is no different. Over the past three years, we’ve established a specialist bulk annuity team with a strong and diverse track record, having completed hundreds of buy-ins and buyouts in their careers between them.
As the only mutual in the bulk annuity market, we exist solely for the benefit of our members and policyholders, not shareholders or private equity investors. Whilst we are a newer entrant to the bulk annuity market, our proposition is built on foundations that have existed since 1861.
1 Based on total 2022 premium income. ICMIF Global 500, 2024
2 All statements correct as at 31 December 2025, unless stated otherwise.
Three reasons to see Royal London differently in the bulk annuity market:
We’re a mutual and that’s unique in the bulk annuity market
We have an undivided focus on our members and policyholders, not delivering sales growth for shareholders.
We’re focused on quality over quantity
Our focus is on an outstanding customer experience and ensuring we continue this for many decades into the future.
We’re doing our administration in-house
We’re completely in control and fully accountable to our trustee clients, without being constrained by any transition bottlenecks.
Royal London’s mutual-led proposition delivers a compelling solution for our trustees, corporate sponsor and vitally, our members.
John Nestor, Chair of Trustees, Project Finch
Our highly experienced administration team have told us that this is the best experience they’ve had with a buy-in provider.
Mike Thirlwell, Trustee Director, The Baillie Gifford & Co Staff Pension Scheme
Royal London has been an excellent transaction partner to work with, delivering a great solution for our pension scheme in impressive timescales.
Duncan Willsher, Chair of Trustees, Retreat York Pension Scheme
What is a buy-in policy?
A buy-in is an insurance policy purchased by the trustees of a defined benefit pension scheme and then held as an asset of the pension scheme. It is designed to meet the pension payments payable to the pension scheme members, with the pension scheme remaining responsible for paying those pensions onwards to members. By securing a buy-in with Royal London, trustees can materially reduce exposure to investment, inflation, longevity and other demographic risks while maintaining continuity of member experience and pension scheme governance.
What is a buyout?
A buyout goes one step further. When a buy-in policy is converted to a buyout, Royal London assumes full responsibility for paying the insured pensions directly to pension scheme members, allowing the trustees and employer to wind-up the pension scheme. The members will become individual Royal London policyholders, with all their benefits then paid into the future by a trusted, long-term insurer.
What size of transactions do Royal London focus on?
We typically work with trustees who are looking to secure a bulk annuity transaction between £30 million and £500 million. This can cover both pensioner and deferred members.
What transactions have you completed to date?
By the end of 2025, we’d completed 24 buy-in transactions insuring the benefits of over 21,000 pension scheme members and covering £2.4 billion of premium. Our transactions have ranged in size from around £10 million to £360 million and all but two of them have been full pension scheme transactions.
Are you ready to support the buyout process?
We are. We’ve invested significantly into market-leading capabilities which will serve our buyout policyholders. Our bulk annuity business will welcome our first individual policyholders to Royal London in H2 2026, when we complete our first buyout conversion. We’ll then move to a steady state of buyouts from 2027.