July 2025
16Jul

PRT Market Momentum Expected to Continue

Pension risk transfers will be among the fastest-growing product lines in the life insurance sector, J.P.Morgan Chase & Co. found in its June 27 “North America Equity Research” report. According to the firm, many U.S. private sector employers that froze and/or closed their defined benefit pension plans as a benefit for employees more than a decade ago still have legacy plans, totaling $3.2 trillion in assets. Many firms have shifted their DB liabilities to insurers through PRT transactions. The PRT market...

July 16, 2025
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09Jul

Demand for pension risk transfer deals increases around the world

Morningstar DBRS has taken note of the pension risk transfer (PRT) market globally in a new commentary report published July 7. In it, they discuss the skepticism some plan members in the United States have about the deals (and the resulting lawsuits) and the regulatory attention being paid to such deals in the United Kingdom. In Canada they note a jump in market volumes in 2024, saying they anticipate demand for such deals will remain steady. “With life expectancy trending higher...

July 9, 2025
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04Jul

US. Asset Gains for 100 Largest Public Pensions Surge $98B in May; PRT Costs Decline

The 100 largest public defined benefit plans in the U.S. raked in $98 billion in asset gains during May thanks to a 2.4% investment gain during the month, according to Milliman’s Public Pension Funding Index. It was the funds’ best monthly market performance in more than a year. The consulting and actuarial firm said the strong gains boosted their estimated funded level to 81.1% from 79.6% a month earlier. It also said that the deficit between the estimated plan assets and liabilities...

July 4, 2025
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June 2025
09Jun

Five trends to watch in the European pension risk transfer market

The strong momentum in the UK pension risk transfer (PRT) market is a well-known and well-developed trend. The last few years have been highly active in terms of both deal flow and new entrants as participants maintain a bullish position on the opportunity. As a provider of longevity reinsurance, we help insurers, as well as pension schemes, execute buy-ins and buyouts to manage the implications of changing life expectancies. This gives us an interesting perspective on what is taking place in the...

June 9, 2025
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06Jun

Milliman Pension Buyout Index May 2025

By Jake Pringle & Ryan Cook Estimated competitive retiree buyout cost, as a percentage of accounting liability, decreased by 140 bps from 102.5% to 101.1% during April As the pension risk transfer market continues to grow, it has become increasingly important for plan sponsors to monitor the annuity buyout market when considering a plan termination or de-risking strategy. Figure 1 illustrates retiree buyout costs with two different metrics: The red line represents only the most competitive insurers' rates from each month,...

June 6, 2025
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March 2025
26Mar

U.S. Pension Risk Transfer Market Size to Hit $102.38 Billion by 2030 – Arizton

The US pension risk transfer (PRT) market is experiencing rapid growth, fueled by regulatory changes, favorable economic conditions, and a heightened focus on reducing financial risks. Key trends include increased plan terminations, the growing adoption of de-risking strategies, rising interest in buy-ins, and the emergence of sidecar solutions. PRT transactions, which encompass lift-outs, plan terminations, and buy-ins, are available in various sizes, with small plan sizes seeing the most significant growth. The evolving regulatory landscape is prompting companies to adopt...

March 26, 2025
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19Mar

U.S. pension risk transfer volume tops $50 billion in 2024, just short of 2022 record

U.S. pension risk transfer volume topped $50 billion in 2024, just shy of the record-setting volume two years earlier, according to a survey from LIMRA. Total dollar volume for pension buyout and buy-in transactions for the year ended Dec. 31 was $51.8 billion, up 14% from 2023. Of that total, LIMRA recorded $48.1 billion in buyout sales and $3.7 billion in buyout sales in 2024. Fourth-quarter volume totaled $12 billion, down 4% from the year-earlier quarter, but volume totals of $14.6...

March 19, 2025
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November 2024
29Nov

US PRT Market sees $14B in Volume in Q3

Following a record-breaking first half of 2024 for the U.S. pension risk transfer market, which closed at $26 billion through June 30, the third quarter also finished strong, according to Legal & General Retirement America’s November market update. The third quarter closed at an estimated $14 billion in total premium—a 35% increase from the third quarter of last year, which landed at $10.6 billion. A huge chunk of that total came from one deal: IBM’s $6 billion PRT with Prudential Insurance Co. of America in September...

November 29, 2024
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27Nov

Kodak looks to terminate US pensions, will gain over $500 million in finances

According to a filing with the SEC, Kodak said that it looks to cut its pension plan. The plan has increased significantly due to initial contributions and market performance. The SEC filing stated that Kodak looks to use the cash from the cut and sale of the plan, which would to offset its debt. The sale — which also includes the sale of “illiquid assets” — was to Mastercard Foundation, and Kodak would retrieve more than $500 million. Kodak confirmed with...

November 27, 2024
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25Nov

UK. Aviva completes a £1.7 billion buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme

Aviva has today announced the completion of a £1.7 billion pensioner buy-in with the National Grid Electricity Group (“the Group”) of the Electricity Supply Pension Scheme (“the Scheme”). The transaction, which completed in October 2024, included transitioning the Group’s existing longevity swap with Zurich Assurance Ltd to Aviva, and insures the benefits for 5,800 pensioner members of the Group. Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by...

November 25, 2024
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