Argyll has launched a new service providing financial strength assessments on insurers. It is designed for trustees and employers who are considering buy-in and buyout transactions and wish to better understand the strength of the insurer counterparty.
With market movements last year creating unprecedented interest in bulk purchase annuity transactions, Argyll broadened its analytical team to ensure we had the skills necessary to help trustees and employers understand the strength of insurer counterparties.
Richard Hall, Senior Partner at Argyll, commented: “handing over responsibility for a scheme is of course a hugely significant event and potentially the final step in a de-risking journey. Understandably, trustees and employers will want the comfort of knowing the insurer is strong enough to assume that responsibility, and how it compares to its peers.”
Around £28bn of buy-ins and buyouts were transacted in UK last year and this year the volume is expected to be considerably higher at potentially £40bn to £50bn.
Argyll’s Head of Insurance Services, Paul Galpin, added: “it’s a fascinating marketplace given the recent surge of activity. There are significant differences between the current eight participants, coupled with the prospect of a ninth waiting in the wings. Often these differences relate to the asset side of the business, and some of the investment structures used by the insurers may be unfamiliar. However we can help trustees and employers understand the risks in plain English, seek additional information where necessary and ultimately ensure they are comfortable to proceed.”
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