LIMRA: Economic Volatility Undermines Second Quarter U.S. Pension Risk Transfer Sales

WINDSOR, Conn., Sept. 22, 2025 —Total U.S. pension risk transfer (PRT) new premium fell 64% in the second quarter of 2025 to $4.1 billion, according to LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey. YTD, total PRT sales were $11.5 billion, 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 $3.7 billion 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 totaling $10.6 billion, representing a 54% sales decline.

There were three smaller single-premium buy-in contracts reported in the second quarter, representing $263.2 million. This is an 86% decline in premium year over year. In the first six months of 2025, buy-in sales were $404.8 million, down 82%. U.S. carriers reported five buy-in contracts, equal to the contracts sold during the same period in 2024.

Single premium buy-out assets reached $307 billion in the second quarter, 10% higher than the prior year. Single premium buy-in assets were $6.3 billion for the quarter, down 27% from the second quarter of 2024. Combined, PRT assets totaled $343.4 billion, representing a 7% year-over-year increase.

A group annuity risk transfer product, such as a pension buy-out product, allows an employer to transfer all or a portion of its pension liability to an insurer. In doing so, an employer can remove the liability from its balance sheet and reduce the volatility of the funded status.

This survey represents 100% of the U.S. Pension Risk Transfer market. Breakouts of pension buy-out sales by quarter and pension buy-in sales by quarter since 2018 are available in the LIMRA Fact Tank.

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