LIMRA reports record-setting increases in the PRT market in third quarter of 2022


There is no doubt that the PRT market is growing fast. LIMRA’s U.S. Group Annuity Risk Transfer Sales Survey shows it. Total buy-out sales – that is, PRT deals in which pension liabilities are fully transferred to an insurer – reached $41 billion by November 30, 2022. This is 89% higher than the same time period in 2021, and passes the previous annual record of $36 billion which was set in 2012. In LIMRA’s view, the total value of these deals will pass $50 billion by the time the year is over.

“While several jumbo deals drove record sales, there were also a record number of contracts sold in the third quarter, signaling widespread industry growth,” said Mark Paracer, assistant research director, LIMRA annuity research. “Greater plan sponsor awareness and desire to de-risk their pension liabilities, rising interest rates and escalating costs to maintain plans are likely driving market expansion in the U.S. We expect these factors to continue to propel the U.S. market into 2023.”

You can find LIMRA’s press release here.