AM Best

Best’s Market Segment Report: AM Best Maintains Stable Outlook on UK Life Insurance Segment


Stanislav Stoev, ACCA, CFA
Senior Financial Analyst
+44 20 7397 0306

Ghislain Le Cam, CFA, FRM
Senior Director, Analytics
+44 20 7397 0268
Richard Banks
Director, Industry Research - EMEA
+44 20 7397 0322

Edem Kuenyehia
Director, Market Development &
+44 20 7397 0280


LONDON - JUNE 11, 2024 08:45 AM (EDT)
AM Best is maintaining its market segment outlook on the U.K. life insurance segment at stable.

In its new Best’s Market Segment Report, “Market Segment Outlook: United Kingdom Life Insurance”, AM Best cites a number of factors supporting its stable outlook, including a strong pipeline for pension risk transfers, as higher interest rates have improved the funding ratio of defined benefit schemes.

The report also suggests the improved interest rate environment will likely support investment yields. At the same time, investment opportunities are likely to broaden after prudential regulatory changes, notably the revision of the matching adjustment framework.

A factor that moderates AM Best’s stable outlook is the increasing use of funded reinsurance, which may lead to increased credit risk and concentration risk with exposures to reinsurers that sit outside of the U.K. regulatory space and can operate highly concentrated business models or take on elevated investment risk.

To access a complimentary copy of this market segment report, please visit

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.