Latest PRT Monitor highlights a sizeable shift from plan terminations to retiree lift-outs
STAMFORD, CT / ACCESSWIRE / October 22, 2020 / Legal & General Retirement America (LGRA) today released its latest Pension Risk Transfer (PRT) Monitor, a quarterly report that highlights market updates, trends, and outlooks, which estimates the total volume for the U.S. PRT market to be over $4 billion in Q3. This is around a $2 billion increase over total volume in Q2 2020.
In Q3, LGRA also points to a notable shift from plan terminations dominating the market in H1 2020 to retiree lift-outs prevailing. Retiree lift-outs accounted for an estimated 60% of deals closed by premium in Q3. LGRA attributes this rise to market stabilization relative to previous quarters.
LGRA continues to see consistent deal flow and recently experienced its strongest Q3 to date, having exceeded $628 million in deals with momentum carrying over into Q4. The business estimates the annual market volume for PRT in 2020 to total approximately $25 billion.
"A strong Q3 for the PRT market demonstrates the continued appetite for companies across the U.S. to de-risk," said George Palms, President of LGRA. "The rise in lift-outs this quarter signals that plan sponsors are gaining confidence in the economic outlook, and we look forward to seeing how this trend evolves through the end of the year."
The complete Q3 PRT Monitor can be found here.
About Legal & General Retirement America
Legal & General Retirement America (LGRA) specializes in customized pension risk solutions for institutional clients in the US market. Established in 2015, Legal & General Retirement America is a business unit of Legal & General America, Urbana, MD. Legal & General America life insurance and retirement products are underwritten and issued by Banner Life Insurance Company, Urbana, MD, and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states, the District of Columbia, and Puerto Rico. William Penn products are distributed exclusively in New York; Banner does not solicit business there. The Legal & General America companies are part of the worldwide Legal & General Group. 20-276
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