February 2025 Edition

Welcome to February's edition of LCP Digest. Our monthly newsletter brings you our latest thinking on the big news and trends across insurance, investment, and pensions.?Every month we will provide you with valuable insights and expert commentary.

Pensions News

• Brookfield Wealth Solutions is set to enter the UK bulk annuity market, introducing buy-in insurance solutions for DB pension schemes under the Blumont Annuity UK brand. Charlie Finch shared his insights on how this new player may influence competition and pricing in the press release here.
• The CMI recently proposed changes to its Mortality Projections Model. This is significant for trustees of defined benefit pension schemes when it comes to assessing their funding position and for sponsors to report their schemes’ financial position on their balance sheets. Read our initial thoughts here.
• The Royal Borough of Kensington and Chelsea’s Pension Fund Committee voted to reduce Council pension contributions to zero for 2025-26. Tim Gilbert explored the context, rationale, and key considerations for revising the rate in his recent blog here.
• There is a growing trend of insurers taking on illiquid assets from DB schemes. LCP’s survey of major UK BPA insurers found that four accepted ￡3.1bn in illiquid assets as premium payments over the past two years—4% of total premiums. James Fermont has looked at the reasons behind this and whether there is potential for more. Read his article here.
• The Chancellor launched plans to unlock ￡160bn of DB pension scheme surpluses to help UK economic growth. We've launched a dedicated hub to keep you updated on the latest developments and discussions around the Government’s growth agenda.

New Co-heads of Pensions Consolidation at LCP

Lydia Fearn and Laura Amin have been appointed as our new Co-Heads of Pensions Consolidation in response to the Government’s policy to drive consolidation and the rapid rate of emerging industry developments in this area.

??Read more in this press release

Master Trusts – How are they evolving?

The provider landscape is changing, and master trusts are constantly updating their propositions under competitive pressure from others in the market.

Our latest report explores key non-investment areas for employers and trustees considering a master trust, including market trends, service improvements, member engagement, and post-retirement offerings.

??Read the report

What trends are shaping emerging market economies?

Emerging markets (EM), the biggest driver of global growth, have been slow over the past 20 years. Since 2020, the global economy has faced many challenges and uncertainties. Amlan Roy looks at the crucial role that EM growth plays in the global economy and how this can be unleashed through policy changes.?

??Read the article

Our latest podcasts

Beyond Curious

In this special episode, David Fairs , Steve Webb , and Michelle Wright discussed the Government’s growth agenda plans to unlock ￡160bn of DB pension surpluses.

??Listen to the podcast episode

Investment Uncut

Our hosts discussed Australia's superfund structure, operations, and investment approach with Mike Ambery of Standard Life UK .

??Listen to the podcast episode

Insurance Uncut

Charl Cronje and Jessica Snowball spoke with? Fabrice Brossart , Group CRO at? Hiscox , about the evolving risk landscape and key priorities for companies this year.?

??Listen to the podcast episode

??View LCP Digest January 2025 Edition here