AM Best has maintained its stable market segment outlook on the United Kingdom’s life insurance segment.

In its new Best’s Market Segment Report, “Market Segment Outlook: UK Life Insurance,” AM Best cites the strong pipeline for pension risk transfers (PRTs), as higher interest rates support attractive pricing to defined benefit scheme sponsors. The PRT market generated more than GBP 50 billion of premium in 2024, and AM Best expects the volume of transactions in 2025 to be close to that figure.

The report also notes that although there is an expectation for further cuts in interest rates, current levels still will support solid investment returns for U.K. life insurers and reduce their reliance on illiquid assets to generate earnings. AM Best also expects regulatory scrutiny to remain focussed on funded reinsurance, which will require attention from life insurance companies.

To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=354305.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250603309188/en/

Stanislav Stoev, ACCA, CFA
Senior Financial Analyst
+44 20 7397 0306
stanislav.stoev@ambest.com

Ghislain Le Cam, CFA, FRM
Senior Director, Analytics
+44 20 7397 0268
ghislain.lecam@ambest.com

Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

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