Dutch life insurers have taken on around €7bn of pension liabilities over the past two years through pension fund buyouts, according to figures from De Nederlandsche Bank (DNB).

The data revealed that buyouts have emerged as an alternative route for pension funds facing the complexity of moving to the Future Pensions Act (Wtp).

While the first schemes have already transitioned to the new system and many others are preparing to do so in the coming years, a growing number are instead transferring their obligations to insurers via collective value transfers, after which the pension fund ceases to exist.

In recent years, Dutch life insurers Achmea, a.s.r., Athora and Nationale-Nederlanden have collectively acquired 15 pension funds through buyouts.

Including the €7bn increase from these transactions, insurers’ total pension liabilities reached €230bn by the end of the third quarter of 2025.

This has increased insurers’ share of total Dutch pension provisions to 15 per cent, out of a combined €1,573bn held by pension funds and insurers, according to DNB.

It noted that buyouts are proving particularly attractive for smaller pension funds, which may lack the scale or resources to manage the transition to the Wtp.

By transferring liabilities to an insurer, funds can avoid the operational and governance challenges associated with implementing the new system, DNB said.

From a member perspective, buyouts can also offer greater certainty.

Pension administration and benefit levels are fixed under an insurance arrangement, broadly reflecting the structure of the current pension system rather than the more variable outcomes under the Wtp.

Market conditions are also supporting increased buyout activity.

Relatively high interest rates have improved funding positions, enabling pension funds to insure indexation as part of a transaction, allowing benefits to keep pace with inflation in line with existing arrangements.

For insurers, buyouts provide an opportunity to grow assets under management and achieve greater cost efficiency by consolidating pension liabilities at scale.

Amid the transition to the Wtp, recent research found that seventy-nine per cent of Dutch employers that provide pensions through an insurer or premium pension institution (PPI) are opting to delay the transition until the deadline, or are using deference as a strategy to transition.

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