The UK banks, the PRA , our insurers and pensions! Something for Manchester?

I’m wondering what the state of British pensions really is and travel to Manchester wondering what I’m reading in NatWest’s assessment of the triangular dependency of pensions , banking and insurance, at least as far as our private sector defined benefit legacy of schemes and pensioners is concerned

Here’ an interesting interpretation of the PRA’s views of Funded Re from NatWest’s content management team

The headline reminds us that the PRA are important if you are NatWest Bank or our insurance companies being bought and hooking up with reinsurers in Bermuda.

Andrew Kenyon is one of the most open bankers I know , to new ideas.

This is not just me and my mates wondering how British pension schemes can be shipped out to Bermuda providing capital for American Private Finance. “Equivalence….?”

This is Nat West Capital Markets and their former star Liam Peek

I wonder whether the ERM playbook will be revisited and suddenly we will find the economic benefit capped in some way to ensure proportionate use. Time will tell. It does then beg the question how are the anticipated volumes going to be supported if proportionate use means NBS rise. Especially if investor appetite for yield does not dim.

The current NatWest superstar shows excitement

The UK life / annuity market’s future looks set to evolve even further and faster than it has in its relatively recent past.

Don’t let H1 volumes or questions about capital providers mislead you: there’s exciting times ahead…

The UK M&A story takes a twist, while bulk purchase annuity (BPA) writers appeared to enter H2 “quietly confident” following a reduction in new business volumes in H1. Click the link to read more 👉 https://spkl.io/6040AVVIw

I’m not “excited” – I’m “terrified” and these are just the headlines. These are fourth quarter headlines and detail .

M&A activity continues

Shortly after news of Athora’s planned acquisition of PIC, 31^st July saw Just Group announce that it was recommending an acquisition offer from Brookfield Wealth Solutions to its shareholders⁽¹⁾.

The transaction (which is expected to complete in the first half of 2026⁽²⁾) will see UK BPA market new entrant Blumont combine with Just. This consolidated insurance group will operate under the “well-known and highly respected Just brand”, with Just’s senior management set to become the new entity’s leadership team.

The offer of 220 pence per share represented a c.75% premium to Just’s share price at the time of the announcement. This equates to a c.£2.4bn purchase price, equal to c.1.2x Just’s HY25 unrestricted Tier 1 (UT1) Own Funds and c.0.9x its HY25 “tangible net assets”⁽³⁾.

The announcement continues by stating that the combined entity will “benefit from access to the industry-leading investment expertise of Brookfield Asset Management.” “This”, it says, “will enable Just to benefit from the Brookfield group’s asset origination capabilities, delivering competitively priced products and services, further expanding its offerings to customers.”

Just are in Manchester this week in great numbers. I want to know, now they have new offshore ownership, what the UK management really think?

I’m there as a freelance journalist and independent blogger. I want to know the views not just of the insurers but of pension directors, chairs of trustees and CIOs.

What is the implication for British pensions and for the companies that sponsor them, what is the outlook for British companies like M&G and Standard Life not relying on American Private Equity and what is the “grandfathered bond” that L&G is tendering for?

Manchester – united?

20 years ago Manchester United was bought by private equity with the help of some difficult finance from Glazier Bonds (assisted by JP Morgan). I remember being caught in a brawl at JP Morgan’s dinner at the Art Gallery, on the other side were Manchester United fans.

The occasion of our being in Manchester was the NAPF (then) Conference at a time when the discussions were all about a Pension Commission. The real action was happening outside the hall!