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Pension Risk Transfer Market Reports
Each year, the Pension Risk Transfer market continues to grow, new records are set, and more plan sponsors turn to pension de-risking strategies. Legal & General Retirement America is here to act as your guide, whether you’re taking a first look into PRT or staying abreast of market trends and performance to create a strategy for your business. Our comprehensive reports offer insight into transaction volume and the total market premium, to help you navigate the Pension Risk Transfer market and make informed decisions.
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
Sources:
1.https://www.limra.com/en/newsroom/news-releases/2025/limra-u.s.-single-premium-pension-risk-transfer-sales-leap-14-to-$51.8-billion-in-2024
2.https://www.limra.com/en/newsroom/news-releases/2023/limra-2022-single-premium-buy-out-sales-topple-prior-record
3.https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2024/4q/4q-2024-pension-buy-out-sales-by-quarter.pdf
https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2024/4q/4q-2024-pension-buy-in-sales-by-quarter.pdf
4.https://am.landg.us.com/insights/psm/
5.https://www.limra.com/en/newsroom/news-releases/2024/limra-u.s.-pension-risk-transfer-sales-jump-14-in-first-half-of-2024
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Previous PRT Market Reports
Read our previous Pension Risk Transfer news and see for yourself how the market has developed over the last several years. Download and review our previous PRT Monitors below.
PRT Monitors
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