UK Pension Superfunds Could Hurt Life Insurers, Fitch Says

Law360, London (June 29, 2020, 6:16 PM BST) -- Life insurers could see falling sales from the bulk purchase annuities market as newly sanctioned defined benefit "superfunds" become increasingly common, Fitch Ratings warned Monday.

The ratings agency said that superfunds might be a more affordable option than insurers for employers looking to offload pensions liabilities. Earlier this month, The Pensions Regulator introduced interim regulatory rules for superfunds to operate that will apply until formal legislation from the government is published.

Fitch said the capital requirements for superfunds are less stringent than those for insurers, which are bound by Solvency II regulations.

"Superfunds will be allowed to operate with less capital...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!