The bulk purchase annuity (BPA) market remains buoyant in 2026, with improved funding positions enabling more schemes to approach insurers. However, from an insurer perspective, not all opportunities are equally attractive. This article explores the current BPA landscape and outlines what insurers should look for when assessing opportunities  and why well-prepared schemes stand out.

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The Current BPA Market Explained

A UK bulk purchase annuity is an insurance policy that a defined benefit pension scheme buys from an insurer to help secure members’ benefits. It is a key mechanism through which insurers assume pension liabilities, requiring careful pricing and risk assessment, as it cedes either all or a portion of scheme responsibilities to insurance providers. There are two main forms of BPA:

• Buy-in: The pension scheme purchases the Insurance policy, while retaining responsibility for paying members. The insurer pays the scheme, and the scheme continues to pay members as normal. Importantly, the insurer assumes the risk associated with pensioner payments.
• Buyout: The insurer takes over responsibility for paying benefits directly to members and assumes full responsibility for the liabilities and ongoing administration of the scheme. Members become policyholders of the insurer rather than remaining in the pension scheme.

At present, competition among insurers is strong, with well-prepared schemes better placed to attract insurer engagement. Given that insurer engagement with schemes below £100m was notably high in 2025, smaller schemes in particular may now be well-placed to take advantage of competitive market opportunities.

For insurers, each transaction represents a balance between deploying capital efficiently, managing longevity and investment risks, and selecting opportunities that can be executed with confidence. As transaction volumes increase, insurers are becoming increasingly selective, prioritising opportunities that align with their risk appetite and operational capacity.

Why Scheme Preparation is Important for Insurers

In a competitive BPA market, preparation can make a material difference. Here are some of the tangible benefits you can expect to see by preparing your pension scheme in advance of transactions.

Greater data confidence

Poor or incomplete data introduces uncertainty, which insurers must either price for or spend time resolving, potentially reducing competitiveness or delaying execution.

Take benefit histories, for instance. When insurers take on liabilities, it is in their best interest to have visibility of what benefits each member has built up over time and how those benefits have changed. This kind of clearly evidenced data increases scheme credibility and allows them to make evidence-backed decisions.

Time savings

In a capacity-constrained market, insurers prioritise opportunities that are straightforward to assess and execute. Cleaner data and complete documentation means insurers spend less time resolving uncertainties and more time assessing the opportunity itself.

More efficient transactions

WTW has noted that BPA transactions often require significant data cleansing and insurer-specific data extracts. For insurers, efficiency in execution is critical. Transactions that require significant data cleansing or clarification increase operational burden and can impact pricing timelines and internal resource allocation.

Reduced execution risk

From an insurer perspective, execution risk directly affects pricing confidence and capital allocation decisions. Schemes that have already addressed gaps in data, processes, and governance are less likely to encounter unexpected issues when they go to market. For pension software supplier Mantle, readiness means being able to demonstrate clear benefits, solid audit trails, and reliable management information, alongside the ability to execute without surprises.

What Insurers Should Look for in a Scheme

A well-prepared scheme is one that is organised, accurate, and operationally ready to go to market. It is best practice for insurers to assess the following factors when evaluating scheme readiness:

1. Accurate member records

Insurers need confidence that member data is complete, validated, and reliable in order to produce accurate pricing. Mantle’s no-code calculation engine allows insurers manage scenarios such as dual records and evolving scheme data.

2. Clear benefits and audit trail

Clarity enables insurers to assess liabilities without needing to make conservative assumptions, which can otherwise impact pricing

Benefits should be well documented, easy to trace, and supported by clear records of decisions, calculations, and any changes over time.

3. Reliable management actions

Insurers rely on consistent, high-quality management information to understand scheme dynamics and price risk appropriately.

This includes data on membership movements, retirements, deaths, and contingent beneficiaries, enabling insurers to build an accurate picture of liabilities and support robust pricing decisions.

High-quality administration and actuarial systems can generate data quality assurance reports, reducing uncertainty and streamlining insurer review processes.

4. Proven operational readiness

Beyond data quality, insurers assess whether a scheme can respond reliably and efficiently throughout the transaction process. This responsiveness is particularly critical during pricing and exclusivity phases, where delays can impact timelines, pricing confidence, and overall deal certainty.

Use Mantle Software for Your BPA Journey

From an insurer perspective, schemes that can demonstrate operational readiness are easier to engage with, assess, and progress – making them more likely to be prioritised in a competitive market.

Mantle’s bulk purchase annuity software centralises the entire journey in one place – from pricing through to buy-in and buyout. Its integrated actuarial capability supports initial pricing and valuation at a scheme and portfolio level, with Control, visibility, and auditability built in for ease of access.

Book a discovery call with us today to see Mantle in action.

 

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Utmost Life and Pensions Completes First External Pension Scheme Buyout, Powered by Mantle

[Belfast, 17^th April 2026] — Mantle Services (“Mantle”), the global pensions software provider and part of the 3173 Group of companies, today congratulates client Utmost Life and Pensions (“Utmost”) on a landmark moment in its bulk purchase annuity (BPA) journey – the successful completion of its first external pension scheme buyout.

The transaction involved the Noble Foods Limited Pension Scheme, with whom Utmost completed a full scheme buy-in in April 2025. In the months that followed, Utmost worked swiftly to issue 455 individual buyout policies to scheme members and dependants – achieving full buyout in under a year. This rapid progression from buy-in to buyout underlines the operational capability and efficiency that Utmost has developed since entering the BPA market.

Mantle was appointed by Utmost in Q3 2024 following a competitive procurement process, selected for the flexibility and advanced functionality of its pensions software platform. Mantle’s technology supports Utmost across the full risk transfer lifecycle – including actuarial valuations, benefits calculations, quotations, and administration through to the issue of individual member policies – all delivered within a single integrated platform. The result is a faster, more efficient journey for both trustees and scheme members.

Chris Tucker, Chief Client Success Officer at Mantle Services, said: “Completing a buyout of this scale in under a year is a real demonstration of what’s possible when the right technology underpins the process. We built our Mantle platform to remove the friction from risk transfer administration, and this transaction is proof of that in action. We’re delighted for the Utmost team and look forward to supporting them as their BPA business continues to grow.”

Gary Needham, Head of BPA Business Development, Utmost Life and Pensions, said: “This is an important milestone for Utmost which was been underpinned by our partnership with Mantle and their innovative platform, [Mantle Administrator].  I’d like to thank the Mantle team for the support, dedication and hard work which has helped us deliver a smooth transition and, importantly, a good experience for the Trustees and their scheme members.”

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Media Enquiries: For media enquiries and further information, please contact Susan O’Neill at Susan_Oneill@mantleservices.com or on 02895 210 225

About Mantle Services

Mantle is a cloud-hosted pensions platform that unifies administration, payroll, treasury, accounts, and actuarial services in one system. Mantle licences its software to in-house pension schemes, third party administrators, actuarial firms and buy-out providers. Used by thousands of schemes and administrators, it automates 100% of benefit calculations, improving accuracy and efficiency. With over 1.7 million member records hosted and £1 billion in payments processed annually, Mantle delivers real-time insight, secure digital access for members, and a streamlined experience for pension providers.

About Utmost Life and Pensions

Utmost Life and Pensions operates both a closed UK life and pensions business and a bulk purchase annuity business. Utmost Life and Pensions manages £5.6bn of primarily unit-linked policyholder assets on behalf of over 290,000 policyholders. Utmost Life and Pensions is authorised by the PRA and regulated by the FCA and the PRA.

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For the last few years, the pensions industry has been in a state of constant preparation. We’ve talked about the new DB Funding Code, prepared for Pensions Dashboards, and watched the Pension Schemes Bill take shape.

2026 is the year these conversations move from theory to reality.

Many schemes will run their first valuation under the new Funding Code. Pensions Dashboards connection deadlines are getting closer. The BPA market is dealing with capacity pressure, and the Pension Schemes Bill looks likely to shift the rules of the game.

At the same time, the bar for service has moved. Members now expect on-demand data and modern digital interactions as standard.

The shift is clear. The planning phase is over. 2026 is about execution. It will reward schemes that have moved beyond “getting ready” and are now capable of delivery. It starts with clean data, efficient systems, and confident decision-making.

Here are the five themes we expect to define the year ahead, and where technology will make the difference between keeping pace and falling behind.

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1) Buy-in and Buyout: Capacity Constraints Drive Selection

Bulk purchase annuity (BPA) activity will remain high in 2026. More schemes can afford to transact, and more trustees now see buy-in or buyout as a realistic destination rather than a distant idea.

Capacity constraints mean insurers are increasingly selective.

When insurers have plenty of choice, they focus on schemes that are well-prepared. That usually means:

• having clean member data and benefit histories
• being able to show a clear benefits specification and a solid audit trail
• producing reliable management information on membership movements, retirements, deaths and contingent spouses
• demonstrating that the scheme can execute without surprises

In a buoyant BPA market, the schemes that move fastest are often the ones that did the unglamorous work early. Data, processes, and documentation.

2) Admin capacity: Efficiency as a necessity

A lot of industry conversation focuses on market conditions and insurer pricing. The quieter constraint is operational capacity.

Many teams are already stretched. When you add a dashboards programme, ongoing rectification, GMP equalisation tail work, and buyout readiness activity, it is easy to see why efficient delivery is hard.

If a scheme’s delivery strategy relies on manual spreadsheets and file transfers between systems, these competing demands will create gridlock. Efficiency in 2026 isn’t a cost-saving exercise. It’s a delivery strategy.

In practice the biggest wins come from:

• cutting down the number of manual touchpoints across admin, actuarial and payroll
• moving key calculations out of spreadsheets and into controlled processes with a clear audit trail
• using workflow to surface the exceptions and let routine cases can run straight through

In practice, it is the difference between admin teams spending time on judgement-heavy work, versus spending time copying data between tools.

3) Pensions Dashboards: Why data becomes “always-on”

2026 is a pivotal year for the Pensions Dashboards Programme. Data quality is no longer something you tidy up “for the big moment”. It is becoming an “always-on” requirement.

Dashboards will act as a magnifying glass. When members can see pension information more easily, small inconsistencies become obvious. Matching issues create confusion. Missing fields create questions. If the scheme cannot answer quickly, the workload lands back on already stretched admin teams.

The shift this year means:

• keeping benefit specifications clear and calculation logic consistent
• maintaining strong audit trails for changes and corrections
• building repeatable processes to produce and refresh key values, including retirement income figures where required
• spotting exceptions early, before they turn into delays and rework
• relying on management information you trust when decisions need to be made quickly

When data is reliable, everything else gets easier. Automation works. Reporting is faster. Transactions run smoother. Member communications become clearer. Dashboards become manageable, rather than a permanent source of manual effort.

4) Member engagement: The “on-demand” expectation

Member engagement is often discussed as a service ambition. In 2026 it becomes unavoidable.

As pension information becomes easier to access, members naturally ask more questions. They will want clarity on what they have, what it means, and what choices they can make.

Modern members expect their pension experience to match their banking experience: digital, instant, and clear. If the scheme cannot answer efficiently, that demand turns into pressure on admin teams.

The most effective response is:

• guiding members through journeys that explain benefits in plain English
• giving members tools to model the common “what if” questions
• making it easy to update details and submit routine requests
• using clear prompts that reduce avoidable queries

Done well, member engagement improves experience and reduces operational load at the same time. That is the sweet spot for 2026: better outcomes for members, fewer avoidable contacts for administrators, and more time for teams to focus on the cases that need human judgement.livers a better experience for administrators and ultimately the member. 

5) DB endgame strategy in 2026: buyout, run-on, consolidation and surplus

With the new DB Funding Code now in play, the long-term funding mindset is embedded. However, the destination is not one-size-fits-all.

Some schemes will pursue buyout at pace. Others will plan for buy-in first, then stage their way forward. Some will explore consolidator options where that makes sense. And more schemes will ask serious questions about running on, particularly where funding strength creates flexibility.

This is where good modelling and good information really matter. Trustees need to compare options properly:

• understanding what each route does to risk
• understanding the impact on cost and governance
• being clear on what it means for members, including communications and service levels
• being clear on what it means for sponsors, especially where surplus emerges

2026 will reward schemes that can turn these into practical choices, based on timely data and consistent calculations, rather than slow cycles of manual analysis.

Closing thoughts

2026 is the year pensions moves from planning to delivery.

Schemes that are aiming for BPA deals will need to be transaction-ready in more than name. Schemes preparing for dashboards will need a sustainable way to keep data accurate and calculations repeatable. Schemes thinking about endgame options will need modelling that is fast enough to support real decisions, not just retrospective reporting.

If we get those foundations right, the year ahead is genuinely exciting. Not because everything becomes simpler, but because better systems and better data let pension professionals spend more time on what truly matters: making the right decisions for members and sponsors.

For further information on what Mantle can offer,
visit our website www.mantleservices.com or contact us at enquiries@mantleservices.com  

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Mantle Services supports Utmost Life and Pensions with entry into bulk purchase annuity markets

Mantle Services (Mantle), the global pensions software provider and part of the 3173 Group of companies alongside Dalriada and Spence & Partners, has partnered with Utmost Life and Pensions (Utmost) to support its successful entry into the bulk purchase annuity (BPA) market.

After a successful procurement process, Mantle was appointed by Utmost in Q3 2024 to support its BPA offering, which aims to address the significant demand for pension risk transfer in the UK. Mantle was chosen due to the flexibility and advanced functionality of its software which provides valuation and benefits calculations and fully automates pension administration processes.

As part of Mantle’s long-term agreement with Utmost, it will provide end-to-end support through every stage of the risk transfer process, including quotations, buy-in administration and in-house administration services upon buyout. This will enable Utmost to provide an effective onboarding process and an efficient migration from buy-in to buyout, all within a single platform.

In addition to supporting Utmost in pricing BPA opportunities, Mantle’s software will be used for actuarial reporting on successful deals and to provide software which allows policyholders to calculate benefits, access their own data and make their own choices. This will enhance operational efficiencies at Utmost Life and Pensions as it embarks on the next phase of its growth.

James Whittingham, Managing Director of Mantle Services, said: “Partnering with Utmost Life and Pensions to support its entry into the bulk purchase annuity market represents a key milestone in the growth of our business. This long-term, fully integrated partnership with a trusted and reliable pensions provider is a testament to the versatility of our software platform and the positive experiences it can deliver for policyholders. We hope that the technological enhancements that Mantle provides will serve as a positive differentiator for Utmost Life & Pensions and help to drive the commercial value of the business in the next phase of its growth.”

Chris Tucker, Senior Client Manager of Mantle Services, commented: “We are delighted to partner with Utmost Life and Pensions as we embark on this exciting journey together in the BPA market. This collaboration marks the beginning of a strong, mutually beneficial relationship, and we’re confident that our innovative pension technology solutions will help drive both of our companies’ growth in this dynamic space. As we continue to expand and evolve in this market, we look forward to working closely with Utmost to deliver exceptional value and support their long-term success.”

Andrew Stoker, CEO of Utmost Life and Pensions said: “Our partnership with Mantle, is a key part of our successful entry into the BPA market, allowing us to provide an attractive BPA proposition and to deliver excellent customer service.”

Gary Needham, Head of BPA Business Development added: “It’s been a pleasure working with the Mantle team and I’ve been impressed with their knowledge, expertise and enthusiasm for working with Utmost to develop a market leading actuarial and data platform to serve the bulk annuity market.  I firmly believe that the end-product will truly set us apart in the market and provide a seamless journey to both Trustees and their scheme members.”

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For further information please contact: Henry Conner at henry.conner@Edelmansmithfield.com or on +44 (0)7709 577 073  

Susan O’Neill at susan_oneill@mantleservices.com or on 02895 210 225

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Mantle Services

Mantle Services is a pension software development business with a difference.

Our solutions range from Administration and Actuarial platforms to Asset Liability Management and much more.

We have designed our modern, contemporary solutions to deliver the outcomes schemes and advisers need now, without the baggage of legacy systems.

We license our software to in-house pension schemes and to third party administrators, actuarial firms and buy-out providers.

About Utmost Life and Pensions

Utmost Life and Pensions operates both a closed UK life and pensions business and a bulk purchase annuity business. Utmost Life and Pensions manages £5.6bn of primarily unit-linked policyholder assets on behalf of over 290,000 policyholders. Utmost Life and Pensions is authorised by the PRA and regulated by the FCA and the PRA.

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