£1.5 billion of BPAs written in 2025, c. 65% increase year-on-year
Firmly on track to meet the £3-4 billion annual sales ambition by 2027
M&G has announced today a significant milestone in its growth journey, completing 11 bulk purchase annuity transactions in 2025, delivering total new business volumes of £1.5 billion with £1.0 billion in Q4 alone.
This result demonstrates continued delivery against the Group’s broader strategic growth agenda, and is a meaningful acceleration of our trajectory in the bulk-purchase annuity market after achieving new business volumes of £0.6 billion in 2023 and £0.9 billion in 2024.
To support BPA new business written in 2025, c. £140 million of capital was deployed, predominantly in the second half of the year, in line with our target range of up to £150 million per annum. Double digit returns are expected on capital deployed.
Our strong capital position enables us to selectively decide when to use our capability in longevity reinsurance. While no longevity reinsurance was utilised in the completion of the 2025 transactions, this remains a potential future management action.
Looking ahead, we will continue to strengthen M&G’s competitive position through product innovation, further differentiating our offering and supporting our long-term growth in this attractive market, where we expect to achieve £3–£4 billion of annual sales by 2027.
Kerrigan Procter, Managing Director Corporate Pension Solutions, said:
“Through the disciplined execution of our corporate pension strategy during 2025, we have rapidly scaled our position as a trusted partner for UK pension funds.
“Our balance sheet, asset capabilities and ability to deliver a differentiated proposition to the UK’s Pension Risk Transfer market, mean we can offer our clients excellent experience and outcomes.
“With a clear roadmap and strong momentum, we look forward to continuing to deliver long-term value for both clients and shareholders.”
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