Reports in the media suggest that two of the UK's largest life insurers, Legal & General and Prudential, could soon see their dominance of the bulk annuity pensions market challenged by a new entrant led by Edmund Truell.

Mr Truell, the founder of Duke Street Capital, is thought to have raised around GBP400 million, which he reportedly intends to invest in assuming the liabilities of mature pension funds from insurers. The capital investment could enable him to take on up to GBP4 billion in pension fund liabilities, according to the Financial Times.

The newspaper reports that Mr Truell is looking to take on the assets of several defined benefit schemes, including the associated administration of the schemes. However the Financial Times says that any such schemes must be either fully funded, or committed to being so in the short term.

The project is likely to use the administrative expertise of Mr Truell’s Xafinity unit, part of the Duke Street business.