Key Takeaways
- • Aviva CEO Amanda Blanc told Reuters that government mandation of investment is the "red line" for the insurance and pensions sector, arguing investment decisions should remain with providers and trustees.
- • Seventeen investment firms running trillions of pounds in insurance and pension assets pledged on May 13 to direct up to 50 billion pounds ($66.38 billion) into unlisted firms, property and infrastructure under the Mansion House Accord.
- • UK pensions minister Torsten Bell described the accord as a voluntary commitment with "no mandation" and rejected the idea that government would compensate schemes for disappointing returns.
- • Blanc said 12.5 million UK savers will not have enough money to retire on current investment approaches, citing Department for Work and Pensions data.
- • Blanc argued insurers are long-term investors that are "not forced sellers," and that recent market volatility should not materially affect their strategy.
Summary
Aviva CEO Amanda Blanc said the government's use of investment mandates would be a "red line" for the sector, according to Reuters. Speaking on May 15, 2025, Blanc said a sector-wide shift into private assets could help millions of pension savers achieve higher returns and avoid old age poverty, provided the government does not dictate how providers invest. Her remarks came after Aviva reported higher first-quarter general insurance premiums.
The context is the Mansion House Accord, under which seventeen investment firms managing trillions of pounds in insurance and pension assets pledged on Tuesday to invest up to 50 billion pounds ($66.38 billion) in unlisted companies, property and infrastructure. The initiative is intended to support government efforts to draw private capital into public projects and growth, and to encourage savers to move money out of cash and into higher-growth domestic assets. Reuters reported concerns that the government could pressure insurers to back politically sensitive projects or impose required allocations to riskier assets such as venture capital.
Blanc said mandation was the red line and that venture capital funds must be invested in the interests of individual pension savers, with trustees holding a fiduciary duty to ensure this. She said insurers have long experience in these asset classes and have delivered strong returns in them. UK pensions minister Torsten Bell has said the accord is voluntary, that there is "no mandation," and that the government would not face pressure to compensate schemes if returns disappoint.
On market conditions, Blanc echoed BlackRock CEO Larry Fink's warning earlier that week of sustained volatility, with investors holding tens of trillions of dollars in cash amid trade war concerns and U.S. economic uncertainty. She argued that insurers, as long-term investors, are not forced sellers and that volatility does not materially affect their approach. She urged savers to engage with their pension providers.
Blanc cited Department for Work and Pensions data showing 12.5 million UK residents will not have sufficient savings to retire if current investment practices continue. According to the Pensions & Lifetime Savings Association (PLSA), average annual pre-tax retirement income is about 21,000 pounds, made up of roughly 9,000 pounds from private pensions and 11,500 pounds from the state pension, compared with the PLSA's recommended level of 31,300 pounds for a moderate living standard.
The context is the Mansion House Accord, under which seventeen investment firms managing trillions of pounds in insurance and pension assets pledged on Tuesday to invest up to 50 billion pounds ($66.38 billion) in unlisted companies, property and infrastructure. The initiative is intended to support government efforts to draw private capital into public projects and growth, and to encourage savers to move money out of cash and into higher-growth domestic assets. Reuters reported concerns that the government could pressure insurers to back politically sensitive projects or impose required allocations to riskier assets such as venture capital.
Blanc said mandation was the red line and that venture capital funds must be invested in the interests of individual pension savers, with trustees holding a fiduciary duty to ensure this. She said insurers have long experience in these asset classes and have delivered strong returns in them. UK pensions minister Torsten Bell has said the accord is voluntary, that there is "no mandation," and that the government would not face pressure to compensate schemes if returns disappoint.
On market conditions, Blanc echoed BlackRock CEO Larry Fink's warning earlier that week of sustained volatility, with investors holding tens of trillions of dollars in cash amid trade war concerns and U.S. economic uncertainty. She argued that insurers, as long-term investors, are not forced sellers and that volatility does not materially affect their approach. She urged savers to engage with their pension providers.
Blanc cited Department for Work and Pensions data showing 12.5 million UK residents will not have sufficient savings to retire if current investment practices continue. According to the Pensions & Lifetime Savings Association (PLSA), average annual pre-tax retirement income is about 21,000 pounds, made up of roughly 9,000 pounds from private pensions and 11,500 pounds from the state pension, compared with the PLSA's recommended level of 31,300 pounds for a moderate living standard.
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