Market Developments

With increased economic uncertainty, some companies have shifted their focus away from de-risking their DB plans to focus on their core businesses but should pick back up again as the markets steady. As illustrated by the chart of US PRT volumes to the right, we saw a similar dynamic in the global pandemic, where the total market volume dropped slightly in 2020 and then quickly regained its momentum to have the three largest years on record from 2022 to 2024. The long-term outlook remains very positive. Between 2022 and 2025 we witnessed an aggregate c.$60bn of deal flow for the first half of the year, compared with c.$33bn for the three-year period before this.

One trend we are seeing in the US is a significant increase in the number of buy-in transactions coming to market. Though common in the UK, buy-ins are a newer trend in the US where traditionally, nearly all transactions have been buyouts with the plan sponsor transferring full responsibility of the plan to an insurer, including participant administration. We have seen a slow increase in buy-in transactions over the past few years, but we anticipate an over 50% increase this year compared to any prior year. The majority of these buy-ins are for full terminations, where the plan sponsor looks to lock in pricing early on in their termination process and transition to buyout when ready.

Like the UK , the number of insurers participating in the US PRT market continues to rise, with more than 20 insurers now providing PRT de-risking solutions to plan sponsors.