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U.S. pension risk transfer sales declined sharply in the second quarter of this year, according to the latest survey from LIMRA.

A group annuity risk transfer, such as a pension buyout product, allows an employer to transfer all or a portion of its pension liability to an insurer. In doing so, the employer can remove the liability from its balance sheet and eliminate the impact on corporate financials of volatility in the pension’s funded status.

In the second quarter of this year, 138 contracts were sold, down 30 percent from the same period last year. Carriers sold 252 contracts in the first half of the year, which was 24 percent lower than sales for the first six months of 2024. In other sales numbers:

  • Premium risk transfer sales totaled $4.1 billion, down 64 percent.
  • Buyout sales fell 50 percent, to $3.7 billion.
  • Buyout sales topped $263 million, falling 86 percent year-over-year.

“Higher economic volatility in the second quarter, coupled with no jumbo deal activity and elevated litigation concerns, dampened pension risk transfer sales in the second quarter,” said Keith Golembiewski, assistant vice president and head of annuity research for LIMRA. “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 carveouts.”

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