Total US single-premium pension risk transfer (PRT) premium was $51.8bn in 2024, up 14% from prior year’s results and less than 1% below the record set in 2022, according to LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey.
There were 794 single-premium contracts sold in 2024, a record high for the US market.
Fourth quarter total single-premium PRT premium fell 4% year over year to $12.0bn, aligned to the choppy nature of PRT sales.
“Remarkable sales in the first and third quarters, drove the near-record pension risk transfer sales in 2024. Fourteen carriers closed at least one $1 billion-plus deal this year, the highest number ever recorded,” said Keith Golembiewski, Assistant Vice President, head of LIMRA Annuity Research.
“The PRT market continues to expand. There were 794 single-premium contracts sold in 2024, a new record high for the U.S. market. While recent interest rate declines and equity market volatility may dampen sales later in 2025, greater plan sponsor awareness of these solutions will keep interest high and sales above pre-pandemic levels.”
Single-premium buy-out premium totalled $11.6bn in the fourth quarter, down 7% from prior year’s results. There were 254 contracts finalised in the fourth quarter, 9% lower than results from prior year. In 2024, buy-out premium jumped 16% to $48.1bn. For the year, there were 784 buy-out contracts, 3% higher than prior year. This marks a record-high number of buy-out contracts sold in a year.
In the fourth quarter, there was one single-premium buy-in contract, representing $377m in premium. In comparison, there were no contracts closed in the fourth quarter 2023. In 2024, 10 buy-in contracts were sold, up from eight contracts in 2023. Buy-in premium totalled $3.7bn for the year, down 5% from 2023.
Single premium buy-out assets reached $296.5bn in 2024, up 13% from the prior year. Single premium buy-in assets were $7.3bn for the year, up 7% from 2023. Combined, single premium assets were $303.9bn, an increase of 13% year over year.