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WINDSOR, Conn., Dec. 10, 2024 —Total U.S. single-premium pension risk transfer (PRT) premium was $14.2 billion in the third quarter, up 36% from prior year’s results, according to LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey.  

Year-to-date (YTD), total single-premium PRT premium increased 21% to $39.9 billion.

“While new premium growth rebounded in the third quarter, the growth can be attributed to larger deal activity,” said Keith Golembiewski, assistant vice president, head of LIMRA Annuity Research. “The bigger story continues to be the expansion of the PRT market. Carriers reported the largest number of contracts ever sold in the first nine months of the year. Higher interest rates are driving companies to de-risk their pension liabilities to annuity providers. LIMRA expects this trend to continue through the rest of the year.”

Single-premium buy-out premium totaled $13.1 billion in the third quarter, up 62% from prior year’s results. There were 203 contracts finalized in the third quarter, level with prior year. YTD buy-out premium jumped 26% to $36.5 billion. Through September 2024, there were 530 buy-out contracts, 10% growth over prior year. This marks a record-high number of buy-out contracts sold. 

In the third quarter, single-premium buy-in premium was $1.02 billion, falling 56% from third quarter 2023. Four contracts were sold in the third quarter, matching the results in third quarter 2023. YTD, buy-in premium totaled $3.3 billion, down 15% year over year. Through the first three quarters of 2024, there were nine buy-in contracts sold, one more sold than prior year (representing a 13% increase).

Single premium buy-out assets reached $288.8 billion through the third quarter, up 13% from the prior year. Single premium buy-in assets were $9.1 billion YTD, 11% higher than the same period in 2023. Combined, single premium assets were $298 billion, an increase of 15% year over year.

A group annuity risk transfer product, such as a pension buy-out product, allows an employer to transfer all or a portion of its pension liability to an insurer. In doing so, an employer can remove the liability from its balance sheet and reduce the volatility of the funded status.

This survey represents 100% of the U.S. Pension Risk Transfer market. Breakouts of pension buy-out sales by quarter and pension buy-in sales by quarter since 2019 are available in the LIMRA Fact Tank.

With more than 100 years of expertise, LIMRA conducts over 80 benchmark studies — producing nearly 500 reports annually — for our members and the industry as a whole. These studies provide trusted insights and a comprehensive understanding of market dynamics, trends, and behaviors.

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