LONDON, 6 August 2008 - The insurance buyout market for defined benefit (DB) pension schemes has recorded a third successive strong quarter, however questions are being raised as to whether the market is able to handle such historically high levels of demand, according to Aon Consulting, a leading pension, benefits and HR consulting firm. Aon's research shows that financial conditions are continuing to make buyout look attractive to pension schemes with the market surging 80% in the second quarter from the first quarter in 2008. The market has now reached a value of £2.7 billion, £1.2 billion more than the first quarter of 2008.
Based on information provided directly from the leading players, Aon's quarterly research records that the 84 cases placed in the second quarter of 2008 was comparable to the 86 of the previous quarter, and the total value of business placed (£2.7 billion) was over £847 million more than the record-breaking fourth quarter of 2007. High profile cases in the second quarter included BBA, Delta, Friends Provident and Rank.
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