MetLife Continues to Profit from Pension Risk Transfer

MetLife has concluded $1.8 billion in pension risk transfer deals so far this 4th quarter of 2023. This is in addition to $2 billion in the second quarter, and $1.5 billion in the third quarter.  It expects that its tally for pension de-risking transactions in 2023 will exceed $5 billion. Although these totals are somewhat smaller than MetLife’s pension risk transfer deal with IBM last year (in which it took on half of $16 billion worth of IBM pension liabilities), it still represents a huge amount of money.

LIMRA reports that, unsurprisingly, the pension risk transfer industry continues to grow. Total ”buy-out” sales in quarter two of 2023 were over $14.5 billion, compared with just over $12 billion in quarter two of 2022, and just under $5 billion in quarter two of 2021.