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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. Banner Life Insurance Company and William Penn Life Insurance Company of New York are 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 – Q4 2025
Market Update
The U.S. Pension Risk Transfer (PRT) market closed 2025 on a strong note, with fourth-quarter premium estimated at approximately $28 billion, making it one of the largest quarters on record. The final quarter saw strong activity in jumbo transactions, with three transactions completed during this time contributing to an expected total of six jumbo transactions for the full year. This helped lift overall volumes and reinforce momentum following a lighter first half of the year.
The second half of 2025 showed an uptick in activity, driven in part by a continued rise in buy-in transactions. This trend continued throughout the year, with buy-in sales finishing well above historical levels as plan sponsors increasingly look to evolve their strategies and secure pricing earlier in their de-risking and termination timelines.
Overall, full-year 2025 PRT premium is estimated to reach approximately $48 billion, positioning the year among the most active on record.
Est. size of Q4 2025 premium
Est. size of full year 2025
PRT Market Outlook
Looking ahead, we expect buy-in transactions to continue to play an increasingly prominent role in the PRT market as sponsors prioritize pricing certainty and risk reduction earlier in the de-risking process. This structural shift is expected to continue shaping the evolving PRT market as we move into 2026.
Early indicators suggest Q1 2026 premium is expected to reach around $4 billion, with additional transactions expected to come to market as the quarter progresses. According to L&G Asset Management’s Pension Solutions Monitor, the average pension funding ratio increased slightly from 105.7% to 106.6%1 in January, leaving plan sponsors in a favorable position to evaluate and execute PRT transactions.
Sources:
1. https://am.landg.us.com/insights/psm/.
2.https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2025/3q/u.s.-group-annuity-risk-transfer-activity–buy-in-sales-2025-third-quarter.pdf
https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2025/3q/u.s.-group-annuity-risk-transfer-activity–buy-out-sales-2025-third-quarter.pdf
Banner Life Insurance Company and William Penn Life Insurance Company of New York are active participants in the US Pension Risk Transfer market, and receive and analyze in the normal course of its business certain information provided to it and other market participants. All non-aggregated statistics presented herein are available in the public domain. The inputs for US aggregated statistics are widely available in the market but may be subject to individual confidentiality obligations. Although believed to be reliable, information obtained from third party sources has not been independently verified and its accuracy or completeness cannot be guaranteed.
The Banner Life family of companies’ 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 Life Insurance Company products are distributed in 49 states and in D.C. and Puerto Rico. William Penn Life Insurance Company of New York products are available exclusively in New York; Banner Life Insurance Company is not an authorized New York insurer and does not do business in New York. Each company is solely responsible for its own financial and contractual obligations. Product guarantees are backed by the financial strength and claims paying ability of the issuing company. CN02192026-1
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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.
Market Update
Total premium H1 2025
Est. size of Q3 2025 premium
Est. size full year 2025
The US Pension Risk Transfer market reached $11.5 billion1 in total premium during the first half of 2025. The market demonstrated steady activity despite the absence of transactions over $1 billion, but the return of such transactions in Q3 has helped lift numbers for the year. In Q3 we’ve seen two transactions above $1 billion, bringing the total to three jumbo transactions in the first three quarters. We are estimating the third quarter to close around $9 billion, a decrease compared to Q3 2024’s $15.5 billion2, but a significant increase over the prior quarter.
The average pension funding ratio remains above 100% and was reported at 105.5%3 in October according to L&G Asset Management America’s pension solution monitor, leaving plan sponsors in a favorable position to transact.
PRT Market Outlook
The first three quarters of the year may have been slower than last, but the fourth quarter is coming in strong with a significant rebound in anticipated volume. We estimate the year to finish between $45–$50 billion with Q4 projected to be among the largest quarters to date at an estimated $29 billion, setting the stage for the second half of 2025 to be one the largest on record (see graph to the right). We anticipate three more jumbo transactions to close in the fourth quarter, for a combined six jumbo transaction this year.
One trend to keep an eye on is the rise in buy-in transactions for plan terminations. We expect more than double the number of buy-in transactions to close this year compared to years prior. The reason behind the rise in buy-in transactions relates to plan sponsors looking to lock in pricing early in their de-risking journey.
Sources:
1. https://www.limra.com/en/newsroom/news-releases/2025/limra-economic-volatility-undermines-second-quarter-u.s.-pension-risk-transfer sales/#:~:text=22%2C%202025%20%E2%80%94Total%20U.S.%20pension,billion%20in%20the%20second%20quarter.
2. https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2025/2q/u.s.-group-annuity-risk-transfer-activity–buy-out-sales-2025-second-quarter.pdf
https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2025/2q/u.s.-group-annuity-risk-transfer-activity–buy-in-sales-2025-second-quarter.pdf
3. Pension Solutions Monitor | L&G
Market Update
Estimated size of H1 2025
Estimated size of Q12025
The US market also saw its second-largest year for PRT on record in 2024 with transaction volumes totalling $51.8 billion, only slightly behind the all-time record of $51.9 billion set in 20221.
Market volumes in the US continue to be driven by jumbo transactions over $1 billion. In 2024, seven such transactions closed for a combined total of approximately $22 billion, representing a significant portion of the annual market volume.
In 2025, activity has remained high in terms of the overall number of PRT transactions coming to the US market. However, the number of jumbo transactions has been lower in H1 compared to last year, which has impacted overall premium volumes.
The first quarter of the year totaled $7.1 billion2, a decrease of over 50% when compared to the first quarter of 2024’s total volume of $14.6 billion3.
A similar story is expected for the first half market volume. We estimate the first half of the year to close at around $11 billion compared to $26 billion4 in 2024.
One jumbo transaction closed in the first half of the year for around $1 billion, whereas five of the largest transactions in H1 2024 totaled just under $15bn. If you remove the jumbo transactions, the first half of 2024 and 2025 would both be around $10 billion, highlighting the impact that jumbo transactions have in any year on total market volume.
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.
PRT Market Outlook
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.
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/2025/limra-first-quarter-u.s.-pension-risk-transfer-sales-top-$7-billion/
3.https://www.limra.com/en/newsroom/news-releases/2024/limra-u.s.-pension-risk-transfer-sales-post-record-high-first-quarter/
4.https://www.limra.com/en/newsroom/news-releases/2024/limra-u.s.-pension-risk-transfer-sales-jump-14-in-first-half-of-2024
5.https://www.limra.com/siteassets/newsroom/fact-tank/sales-data/2025/1q/u.s.-group-annuity-risk-transfer-activity–buy-out-sales-2025-first-quarter.pdf
Read the full L&G Global PRT Monitor here
Market Update
Total premium in 2024
Estimated size of Q1 2025
Estimated size of H1 2025
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.
PRT 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-salesleap-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