Total US pension risk transfer (PRT) premium was $14.6bn in the first quarter 2024, 130% higher than first quarter 2023, according to LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey.
There were 146 contracts sold in the first quarter, 26% higher than the prior year. These contracts cover almost 200,000 pension participants. Since January 2020, US PRT deals have covered more than 2.5 million participants.
“Demand for PRT solutions continues as favorable economic conditions spur plan sponsors to de-risk their pension obligations,” said Keith Golembiewski, assistant vice president, head of LIMRA Annuity Research.
“While there were a few jumbo deals driving the remarkable premium growth, the number of contracts sold was the highest first quarter results seen since LIMRA has been tracking sales, signaling broad plan sponsor interest.
“LIMRA expects this momentum to continue throughout 2024,” Golembiewski added.
Single-premium buy-out sales were $14.2bn in the first quarter, up 124% from prior year’s results. There were 144 buy-out contracts in the first quarter, up 24% from the first quarter 2023.
There were two single-premium buy-in contracts reported in the first quarter, representing $435.6m. There were no buy-in contracts in the first quarter of 2023.
Single premium buy-out assets reached $273.3bn in the first quarter, up 14% from the prior year. Single premium buy-in assets were $7bn for the quarter, 19% higher than in first quarter 2023. Combined, single premium assets were $280.3bn, an increase of 14% year over year.
