Brookfield reportedly plans to enter UK bulk annuity market

Canadian investment management firm Brookfield has applied to set up an insurance company in the UK to move into the bulk annuity market, according to reports in the Financial Times (FT).

The FT reported that Brookfield has filed paperwork with the Prudential Regulation Authority to set up a new insurer.

It has previously considered entering the UK’s bulk annuity market through the acquisition of a pre-existing insurer, according to the FT.

However, it has now been revealed that it plans to establish its own insurance business in the UK to enter the competitive bulk annuity market.

There have already been two new entrants in the market in 2024 so far, after Royal London and Utmost announced plans to do so earlier this year.

Commenting on the announcement, LCP partner, Charlie Finch, said that Brookfield’s planned entry demonstrated how “vibrant” the UK bulk annuity market is.

“It will take the market to a record 11 participants following the entry announcements earlier this year by Royal London and Utmost,” he stated.

“Brookfield already participates in both the US and Canadian bulk annuity markets, and has the potential to be significant provider in the UK market.

“Their entry will add further capacity and competition as record numbers of defined benefit schemes enter into buy-ins and buy-outs, with volumes of up to £600bn predicted over the next 10 years.”