Total US pension risk transfer new premium fell 64% in the second quarter of 2025 to $4.1bn, according to LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey. Year-to-date, total PRT sales were $11.5bn, down 56% year over year.
There were 138 contracts sold in the second quarter, down 30% from the prior year. In the first half of 2025, PRT carriers sold 252 contracts, 24% below the contracts sold in the first six months of 2024.
“Higher economic volatility in the second quarter, coupled with no jumbo deal activity and elevated litigation concerns, dampened PRT sales in the second quarter. However, our data suggest employers are still looking to mitigate their pension liabilities. More than a third of second-quarter sales (38%) were retiree-only carve-outs,” said Keith Golembiewski, Assistant Vice President, Head of LIMRA Annuity Research.
“Although this year’s sales will likely remain below the record sales set in 2024, growing plan sponsor interest as more carriers enter the market — expanding market capacity — will ultimately propel strong PRT sales in future years.”
Single-premium buy-out sales fell 60% to $3.7bn in the second quarter. There were 122 buy-out contracts in the second quarter, 33% lower than the second quarter of 2024. YTD, there were 247 buy-out contracts totalling $10.6bn, representing a 54% sales decline.
There were three smaller single-premium buy-in contracts reported in the second quarter, representing $263.2m. This is an 86% decline in premium year over year. In the first six months of 2025, buy-in sales were $404.8m, down 82%. US carriers reported five buy-in contracts, equal to the contracts sold during the same period in 2024.
Single premium buy-out assets reached $307bn in the second quarter, 10% higher than the prior year. Single premium buy-in assets were $6.3bn for the quarter, down 27% from the second quarter of 2024. Combined, PRT assets totalled $343.4bn, representing a 7% year-over-year increase.
A new report from October Three, a defined benefit strategy, management and administration consulting firm, offers additional insights into some of the drivers of current trends.
The report shows that carriers are adjusting underwriting guidelines which has resulted in a shift in the type of transactions they participated in during H1 of 2025, and provides a look into how they anticipate their PRT business will be impacted over H2 2025 and into 2026.
The report also suggests that PRT transactions trending toward more terminations than lift-outs, buy-in structures becoming more prevalent, fewer jumbo transactions currently in the market, increased competition, with new carriers expected to enter the market and existing carriers adjusting underwriting guidelines to capture more business and insurers devoting more resources to PRT business are all contributors to the expectation that PRT activity in 2025 is expected to decline from that of 2024.
“Uncertainty around economic conditions and litigation are causing companies to delay decisions on pension risk transfers, especially jumbo transactions,” said Mark Unhoch, Partner and Pension Risk Transfer Practice Leader at October Three.
“With the anticipated decrease in PRT volume for 2025, carriers are offering more competitive pricing. That coupled with high pension funding levels and the current performance of the stock market, conditions remain highly favorable for pension risk transfers.”
