The US pension risk transfer (PRT) market delivered its largest first quarter on record, according to the latest quarterly Pension Risk Transfer Monitor from Legal & General Retirement America (LGRA).
LGRA estimates that $15bn worth of transactions were completed between January and March this year, more than twice that seen in 2023 ($6.3bn) and three times greater than 2022’s $5.3bn.
“Jumbo transactions continue to be the driving force behind the market’s strong performance. We saw two such transactions close in Q1 totaling $11bn,” says LGRA in this quarter’s report.
LGRA expects total volume in H1 to come in at approximately $22bn, and the outlook remains rosy.
“The US pension funding ratio remains high and plays a role in the number of transactions that come to market…as funded statuses stay elevated, we expect continued demand for de-risking from plan sponsors who are in a good position to transact,” adds LGRA in the report.
