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Pension Risk Transfer Monitor – Q1 2025

Market Update

2024 was another stellar year for the US Pension Risk Transfer (“PRT”) market, which saw total premiums close to $51.8 billion1, right on par with 2022’s record-breaking year of $51.9 billion2.

The first quarter of 2025 saw a drop in premium by around 50% compared to last year’s $14.6 billion3. We are estimating this year’s first quarter premium to close around $7 billion. (See graph below).

Transactions over $1 billion continue to be the driving force behind premium volumes. The first quarter of 2024 was driven by two transactions that totaled above $10 billion. In Q1 2025, we saw only one transaction exceed $1 billion. Excluding these outlying transactions, the first quarter of this year remains comparable to the highest performing Q1 that occurred in 2024 and will close as the second highest Q1 on record.

The average pension funding ratio remains elevated at 109.6%4 in March according to L&G Asset Management, America’s pension solution monitor. When funding ratios are elevated, plan sponsors overall are in a better position to transact.

Total premium in 2024

Estimated size of Q1 2025

Estimated size of H1 2025

Market Outlook

From what we have seen so far, the number of transactions expected to close in the first half of the year is similar to last year, but the absence of jumbo transactions is driving premium volumes down. We are currently estimating the first half of the year to close around $11 billion compared to $26 billion5 last year, with around $15.5 billion of 2024’s half year total being attributable to five transactions. So, while transaction activity remains high, more jumbo transactions will be needed in the second half of the year to match record levels seen in the last few years.

Annual First Quarter US Market Volumes ($billions)3

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Previous PRT Market Reports

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