US pension risk transfer (PRT) activity accelerated sharply in late 2025, driven by a surge in single-premium annuity transactions as plan sponsors sought to manage volatility and reduce long-term liabilities.
According to LIMRA’s US Group Annuity Risk Transfer Sales Survey, new premium for single-premium PRT products - covering both buy-out and buy-in contracts - rose 132% year over year to $28 billion in the fourth quarter. The growth was fueled largely by increased adoption of buy-in structures, which reached a record $12.7 billion for the quarter, while buy-out sales totaled $15.3 billion, up 32% from the same period in 2024.
Despite the rise in premium volumes, the number of buy-out contracts declined slightly to 252 in the fourth quarter, down 1% year over year. In contrast, buy-in contracts increased significantly to seven deals, representing a 600% jump from the prior year, highlighting growing interest in alternative de-risking strategies.
LIMRA noted that buy-ins played an increasingly prominent role as plan sponsors navigated economic uncertainty and balance sheet pressures. Unlike buy-outs, buy-ins allow employers to transfer asset and longevity risk to insurers while retaining plan administration and keeping liabilities on their balance sheets, offering greater flexibility during transitional phases of pension risk management.
For the full year, buy-out sales totaled $31.3 billion, down 35% compared with 2024, with 683 contracts completed. Meanwhile, buy-in premium surged 372% to $17.5 billion, with 17 contracts recorded, marking a 70% increase in deal count. In total, more than 740,000 defined benefit plan participants were covered by PRT transactions in 2025.
Asset growth in the segment also remained strong. Buy-out assets reached $326 billion, up 10% year over year, while buy-in assets climbed 120% to $16.1 billion. Combined, total single-premium PRT assets rose 13% to $342.1 billion.
LIMRA said the data points to a maturing PRT market, with increased participation from smaller and mid-sized plan sponsors. Nearly two-thirds, or 63%, of 2025 transactions involved contracts under $1 billion, reflecting broader adoption across a wider range of employers.
The results underscore continued demand for pension de-risking solutions as organizations look to manage financial exposure, stabilize funding positions, and transfer long-term obligations to insurers in an evolving economic environment.
