The burgeoning bulk purchase annuity market has often been perceived as a landscape dominated by large-scale transactions, but a significant milestone highlights a powerful and growing trend in a previously underserved segment of the industry. Broadstone’s specialized SM&RT Insure service, designed explicitly for smaller pension schemes, has now facilitated over £1 billion in total bulk purchase annuity (BPA) business since its launch in 2021. This achievement was propelled by a record-breaking performance in 2025, during which the platform advised on 36 separate deals valued at a combined £508 million in de-risking premiums. These transactions successfully secured the pension benefits for more than 5,000 members, demonstrating the substantial and increasing demand for tailored de-risking solutions among small and medium-sized schemes aiming to complete their journey to buyout and eventual wind-up. The platform’s rapid ascent underscores a pivotal shift, proving that with the right approach, smaller schemes can effectively navigate the complexities of the insurance market.
Catering to an Underserved Market
A defining characteristic of the platform’s success has been its dedicated focus on guiding small and medium-sized pension schemes through the intricate process of de-risking, an area often overlooked by larger market players. This commitment is evidenced by the transaction data from 2025, where 21 of the 36 completed deals were for schemes valued below the £10 million threshold. This granular focus addresses the unique challenges smaller schemes face, including limited resources and negotiating power, which can make accessing the bulk annuity market seem daunting. By streamlining the transaction process and presenting these schemes attractively to insurers, the service has created a viable pathway to securing member benefits. Since its inception, the SM&RT Insure proposition has supported a total of 61 schemes, ensuring the long-term financial security for the benefits of more than 9,000 individual members. This demonstrates a clear and consistent pattern of enabling smaller entities to achieve their de-risking objectives in an efficient and cost-effective manner.
Navigating a Competitive Landscape
The market activity throughout 2025 revealed a crucial evolution in the de-risking landscape, where increased demand from smaller schemes was met with growing competition among insurers for these valuable deals. This heightened insurer appetite created a more favorable pricing environment, but it also placed a premium on readiness. It became evident that for small schemes to capitalize on these conditions, meticulous and thorough preparation was not just advantageous but essential. The most successful transactions were executed by schemes that had invested time in preparing clean data, setting clear objectives, and engaging with advisors to present a compelling and efficient case to the market. This groundwork proved critical in attracting insurer interest and navigating the process smoothly, ultimately enabling these schemes to secure an affordable and successful outcome. The trend underscored that in a competitive environment, being well-prepared was the single most important factor in transforming de-risking aspirations into a tangible reality for trustees and their members.
