By Chris Pritchard, Principal and Co-Head of Insurance Investment and Michael Hall, Investment Client Manager, Barnett Waddingham

At the same time, intensifying competition in the bulk annuity market means pricing is increasingly driven by other factors – leaving credit as just one small piece of a far more complex equation.

“Insurer pricing is increasingly driven by other factors – leaving credit as just one small piece of a far more complex equation.”

The historical role of credit ahead of buy-in

Ahead of a buy-in, DB schemes have often adopted credit exposure to mirror the allocations of insurers.  In principle, investing like an insurer should help to hedge the risk of adverse movements in buy-in pricing. To…