BPA Market Report: July 2023 - July 2024
Market Growth
- UK Market: £50+ billion in 2023 transactions
- US PRT Market: $45 billion in 2023
- Asia-Pacific: First major transactions in Japan/Australia
Key Transactions
- Legal & General: £7.1B British Airways deal (Mar 2024)
- Prudential: $4.3B tech firm PRT (Q4 2023)
- Rothesay Life: AI-powered Co-op Pension deal (Jun 2024)
Market Drivers
- Stable interest rates (BoE 5.25%, Fed 5.25-5.5%)
- UK Solvency II reforms freeing £100B+ capital
- New SEC disclosure rules for US PRT
Innovations
- Generative AI in longevity modeling
- Blockchain smart contracts (Swiss Re pilot)
- ESG-linked annuity discounts
Key Sources
Why This Matters
The BPA market has become a $100+ billion global industry, serving as critical infrastructure for pension risk management. While technological innovation and regulatory changes are driving growth, insurers must navigate evolving challenges in longevity risk and margin pressures.