Bulk annuity policies, also called ‘buy-ins’, provide payments to trustees that match their members’ regular benefit payments, provide increased financial security to those members and provide greater certainty to the sponsoring employer. The policies also come with the option to fully transfer the members to Royal London’s care, typically called a ‘buyout’, allowing trustees to then wind up the pension scheme.
As a purpose-driven modern mutual, we have an undivided focus on looking after the interests of our 8.6 million members and policyholders1. We’ve built on this long-standing experience and invested in specialist bulk annuity teams and modern platforms to ensure you and your members receive a brilliant service. At the heart of that is our in-house bulk annuity administration team. We’re a long-term business for long-term promises and our commitment to the bulk annuity market is no different.
We're the UK's largest mutual life, pensions and investment company2. As a mutual, we’re also committed to playing our part in moving fairly to a sustainable world and helping build financial resilience in our society.
1 As at 30 June 2025
2 Based on total 2022 premium income. ICMIF Global 500, 2024
Video Transcript
12 months ago, Royal London brought something new to the bulk annuity market, a different kind of offer backed by a different kind of business.
Right.
Let's go.
It's been quite a year.
Yeah, it's been really good.
So I'd say we're only at the beginning of this journey into the bulk annuity market.
But we couldn't be happier.
We are the UK's largest mutual life pensions and investment company.
Put simply that means we don't have shareholders or private equity investors. Instead, we have an undivided focus on delivering for our customers.
Our purpose as a business reflects our commitment to delivering positive outcomes for society and the millions of policy holders who have entrusted us with their financial future.
And in September of last year, we brought that same purpose to the bulk annuity market, providing the only mutual led offering to trustees.
We've always been a long-term business for long-term promises, and our commitment to this market is no different.
To support this ambition, we've established and grown a specialist bulk annuity team who have completed hundreds of buy-ins and buy-outs in their careers.
A team with a brilliant purpose-driven culture at its heart,and that team with that purpose has now completed 18 Buying transactions, secured over 18,000 pension scheme members benefit promises and written nearly 2 billion pounds in bulk annuity premiums.
It's not bad. It's not bad,yeah.
It's big numbers.
But it's even bigger responsibility.
Our proposition is simple. It's about putting the quality of experience for trustees and their members first.
My name is Tiziana Perrella. I am a trustee director. Today Royal London are showing me around the offices and also how they work on a day-to-day basis.
It's about being purpose built for buyout with no legacy systems and no frustrating backlogs, and at the very centre of that commitment is our in-house, buy-in and buyout administration team.
This ensures that we're fully in control and fully accountable to our trustee clients so they can rest assured that they and their members get clarity, continuity, and outstanding care.
From day one, many of our initial trustee clients have seen this impressive ambition in action firsthand while visiting our Alderley Park
office just south of Manchester.
I have found the time I spent with the team today incredibly rewarding. The dedication and quality on show has been very impressive.
Everything we do, we do with trustees and their members in mind.
That's the mindset that defines us. It's our mutual mindset.
Being a mutual means that we can and do view things through a different lens over the long term ,from Wellbeing Services to improve our policy holders' financial resilience, through to investing responsibly.
We go further because we believe it matters, and it's that same mutual mindset that allows our business to make investments for the long term. Investments like our 21,000 acre farm, where our team are using innovation and technology with the aim of benefiting future generations.
The past year has been a real success in terms of our early transactions, but the strength of the market reception from trustees and advisors has been the defining success of our first year.
We're building a reputation on trust, quality, and service. Our Bulk annuity clients tell us they chose Royal London for our clear purpose as a business and for the high quality and tailored service that we bring to each transaction.
I feel super proud about the consistent feedback that we're receiving from trustees.
It makes it all worth it.
We genuinely care about not only delivering now.
But most importantly in the decades ahead.
Looking ahead, we're excited to see our first buyout conversions happen next year, and welcoming our first individual policy holders to Royal London.
A huge amount of investment is going on behind the scenes to ensure the high-quality systems processes, and people are all ready to go before that happens.
And we want to continue working, building relationships, building momentum, but steadily, responsibly and first and foremost, delivering on our promises to our clients.
We know we still have a lot to do to deliver on our commitments
But it's been great that so many trustees see us as genuinely different.
One year in, we're proud of what we've built and looking forward to what's ahead.
If you'd like to hear how we can support your pension scheme with their buy-in transaction, then please get in touch with our team.
Why choose Royal London for a bulk annuity policy
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We’re a mutual and that’s unique in the bulk annuity market. We’re owned by our members and have an undivided focus on delivering a first-class service for them and our policyholders
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We have a trusted brand that many of your members will know and love3.
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We’re focused on quality ahead of quantity and ensuring an outstanding customer experience.
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We’re purpose built for buyout with no congested backlogs, and we intend to keep it that way
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We’re undertaking our administration in-house so we’re in control and fully accountable to our trustee clients.
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With £181 billion of assets under management4 and a robust solvency position, we're here to offer your members financial security and stability.
3Average brand affinity across 2024, survey undertaken by third party, BrandVue
4 As at 30 June 2025
Bulk annuities: at a glance
A bulk annuity – sometimes known as a bulk purchase annuity – is an insurance policy which passes the primary risks of running a defined benefit pensions scheme to an insurer. The first step is purchasing a ‘buy-in’ policy, before then transitioning to ‘buyout’.
Buy-in
A buy-in is an insurance policy purchased by the trustees of a defined benefit pension scheme and held as an asset of the pension scheme. It is designed to match the pension payments payable to the pension scheme members, with the scheme remaining responsible for paying those pensions onwards to members.
The buy-in policy helps to remove the pension scheme’s exposure to financial and demographic risks.
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.
