Brookfield Wealth Solutions has entered the U.K. insurance market, in a long-anticipated foray into the country’s pension risk-transfer industry.
The move will see the business, which was spun out of Brookfield Corp. in 2021, bid to take over liabilities from U.K. pension plans. With over £500 billion ($619.7 billion) of demand for pension buyouts expected over the next decade, “the U.K. represents a significant opportunity to grow, create employment and invest domestically,” the firm said in a statement on March 3.
Employers worldwide are trying to get traditional pension obligations off their books as workers live longer and markets remain in flux. By turning to so-called pension risk transfers, firms pay insurers to take on their financial obligations to pensioners. In Britain, the market is largely dominated by domestic players like Legal & General Group, Phoenix Group Holdings, Aviva and Pension Insurance Corp.
The Brookfield business is expected to start operations later in the first quarter, subject to final regulatory approvals, according to the statement.
