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.
In the first nine months of 2024, total single-premium PRT premium increased 21% to $39.9 billion.
“The growth can be attributed to larger deal activity,” said Keith Golembiewski, assistant vice president, head of LIMRA Annuity Research, in a press release. “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,” he added.
A group annuity risk transfer product, or pension buy-out, allows an employer to exit the define benefit pension plan business. The buy-out involves exchanging all or part of the employer’s pension assets and liabilities for a group annuity underwritten by a life insurer.
According to LIMRA:
- Single-premium buy-out premium totaled $13.1 billion in the third quarter, up 62% from prior year’s results.
- 203 contracts were 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, up 10% year-over-year.
- A record-high number of buy-out contracts were sold
- Single premium buy-out assets reached $288.8 billion through the third quarter, up 13% from 2023.
- Single premium assets totaled $298 billion, up 15% year-over-year.
Buy-ins
A pension buy-in is an insurance policy that helps cover a portion of a pension plan’s liabilities. The policy guarantees enough funds to meet future obligations. It is held as an asset of the plan, alongside the plan’s other investments. Plans may use buy-ins as part of their risk management or long-term self-sufficiency strategies. According to LIMRA:
- In the third quarter, single-premium buy-in premium was $1.02 billion, down 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, nine buy-in contracts sold, one more sold than prior year (a 13% increase).
- Single premium buy-in assets were $9.1 billion YTD, 11% higher than the same period in 2023.
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.
© 2025 RIJ Publishing LLC. All rights reserved.
