Total US pension risk transfer (PRT) new premium declined 64% in the second quarter of 2025, reaching $4.1 billion, according to LIMRA’s US Group Annuity Risk Transfer Sales Survey.
Year-to-date, total PRT sales stood at $11.5 billion, a 56% decrease compared to the same period in 2024.
The number of contracts sold also dropped, with 138 contracts in the second quarter, down 30% from the prior year. For the first half of 2025, PRT carriers sold 252 contracts, which is 24% fewer than 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,” said Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research.
He also noted that employers continue to seek ways to reduce pension liabilities, as 38% of second-quarter sales were retiree-only carve-outs.
“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,” Golembiewski said.
Single-premium buy-out sales in the second quarter fell 60% to $3.7 billion. The number of buy-out contracts reached 122, representing a 33% decline from the second quarter of 2024. Year-to-date, there were 247 buy-out contracts totaling $10.6 billion, a 54% drop in sales.
The second quarter saw three smaller single-premium buy-in contracts, totaling $263.2 million, which is an 86% decrease in premium compared to the previous year. In the first half of 2025, buy-in sales were $404.8 million, down 82%. US carriers reported five buy-in contracts during this period, matching the number sold in the first half of 2024.
Single premium buy-out assets reached $307 billion in the second quarter, reflecting a 10% increase from the prior year. Single premium buy-in assets were $6.3 billion, down 27% from the second quarter of 2024. Combined, PRT assets totaled $343.4 billion, a 7% year-over-year increase.
While overall PRT activity has slowed, certain regions remain active. The Southern US, in particular, continues to account for the largest share of the PRT market. This is attributed to the presence of Fortune 500 companies, a growing healthcare sector, and increased activity in industries such as hospitality and leisure, all of which are contributing to ongoing demand for pension risk transfers in that region.
The structure of PRT transactions is also evolving. Lift-outs, which allow plan sponsors to transfer risk for specific retiree groups or beneficiaries rather than the entire plan, have become the most common transaction type, making up more than 63% of the market in 2024. This approach is increasingly favored by sponsors seeking to manage risk without a full plan termination.
Additionally, the fastest growth in the PRT market is occurring among small plan sponsors. This segment is expanding at a compound annual growth rate of 13.65%, driven by more specialized solutions, regulatory changes, and increased competition among insurers, which have made pension risk transfer more accessible to smaller employers.
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