Economic volatility undermines Q2 US PRT sales

Written by Adam Cadle

23/09/2025

Total US pension risk transfer (PRT) new premium fell 64% in Q2 2025 to $4.1bn, according to LIMRA’s US Group Annuity Risk Transfer Sales Survey.

Year-to-date (YTD), total PRT sales were $11.5bn, down 56% year-over-year.

There were 138 contracts sold in Q2, down 30% from the prior year. In the first half of 2025, PRT carriers sold 252 contracts, 24% below the contracts sold in the first six months of 2024.

“Higher economic volatility in the second quarter, coupled with no jumbo deal activity and elevated litigation concerns, dampened PRT sales in the second quarter. However, our data suggest employers are still looking to mitigate their pension liabilities. More than a third of second-quarter sales (38%) were retiree-only carve-outs,” said Keith Golembiewski, assistant vice president, head of LIMRA Annuity Research.

“Although this year’s sales will likely remain below the record sales set in 2024, growing plan sponsor interest as more carriers enter the market — expanding market capacity — will ultimately propel strong PRT sales in future years.”

Single-premium buy-out sales fell 60% to $3.7bn in Q2. There were 122 buyout contracts in the second quarter, 33% lower than the second quarter of 2024. YTD, there were 247 buyout contracts totalling $10.6bn, representing a 54% sales decline.

There were three smaller single-premium buy-in contracts reported in Q2, representing $263.2m. This is an 86% decline in premium year over year. In the first six months of 2025, buy-in sales were $404.8m, down 82%. US carriers reported five buy-in contracts, equal to the contracts sold during the same period in 2024.

Single premium buy-out assets reached $307bn in Q2, 10% higher than the prior year. Single premium buy-in assets were $6.3bn for the quarter, down 27% from Q2 2024. Combined, PRT assets totalled $343.4bn, representing a 7% year-over-year increase.

This survey represents 100% of the US PRT market.

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