By Tommy Reggiori Wilkes

LONDON (Reuters) - Brookfield Wealth Solutions said on Monday it was entering the UK pension insurance market, as Canadian financial giant Brookfield looks to tap into strong demand from companies to offload their pension scheme risks to insurers.

The move marks a rare new entrant into the UK pension insurance market, and one armed with Brookfield's sizeable financial firepower.

Brookfield Wealth Solutions, which was spun out of the sprawling Brookfield Corporation in 2021, expects to begin operations later this quarter under the Blumont Annuity UK brand, it said in a statement.

Bulk annuities are a form of insurance whereby a company's pension plan offloads liabilities to an insurer.

Reuters reported in 2023 that Brookfield was considering entering the UK market and scanning the sector for potential deals to access bulk annuities.

The bulk annuities market has been growing in recent years, although growth has plateaued more recently.

British pension insurance deals totalled 45 billion pounds in 2024, with 40 billion to 50 billion pounds in deals expected this year along with new entrants into the sector, adviser LCP said in a report last month.

Life insurers such as Aviva, Legal & General, and Phoenix, have expanded in recent years into the profitable but competitive market with companies eager to offload pension scheme risk from their balance sheets.

"With more than $140 billion in total assets, we look forward to serving the retirement needs of UK pensioners for the long term," said Sachin Shah, CEO, Brookfield Wealth Solutions.

"Our group-wide commitment is to provide long-term financial security for our policyholders and clients, serviced by strong, well capitalized companies with high quality investment portfolios," Shah added in the statement.

The launch is subject to final regulatory approvals, Brookfield said.

(Reporting by Tommy Reggiori Wilkes, Editing by Iain Withers)