Milliman: November sees decline in PRT premiums
Pension risk transfer premiums fell in November due to decreases in both discount rates and annuity purchase rates, a Milliman study said. The estimated buyout cost as a percentage of accounting liabilities (accumulated benefit obligation) dropped to 101.8% as of Nov. 30, from 102.9% a month earlier. The change was the result of average annuity purchase rates decreasing by 9 basis points, according to Milliman's latest pension buyout index study. Average accounting discount rates dropped 20 basis points in November....