Pension risk transfer (PRT) activity in the US slowed sharply in 2025. LIMRA’s latest survey showed new premium fell 64% in Q2 to $4.1 bn and dropped 56% in the first half to $11.5 bn.
Contract volume fell too. Carriers wrote 138 deals in the quarter, down 30% from 2024. Across the first six months, there were 252 contracts, 24% lower year over year.
Roughly 38% of Q2 sales were retiree-only carve-outs, LIMRA said.
“Higher economic volatility in the second quarter, coupled with no jumbo deal activity and elevated litigation concerns, dampened PRT sales,” said Keith Golembiewski, who heads annuity research at LIMRA.
While he expects 2025 totals to fall below last year’s records, he pointed to continued sponsor demand and new carrier entrants that expand capacity. Longer term, he argued, the fundamentals still support strong growth.
Buy-out sales fell hard. Single-premium buy-outs totaled $3.7 bn in Q2, down 60% from a year earlier, across 122 contracts – off 33%.
Year-to-date totals were $10.6 bn from 247 contracts, a 54% decline. Buy-in contracts, a smaller slice of the market, came to $263.2 mn in Q2, an 86% drop. The first half saw $404.8 mn across five deals, down 82% from last year.
Despite weaker flows, asset totals climbed. Single-premium buy-out assets rose 10% year over year to $307 bn in Q2, while buy-in assets slipped 27% to $6.3 bn. Combined PRT assets reached $343.4 bn, up 7%.
Annuities, meanwhile, went the opposite direction. Individual annuity sales totaled $119.5 bn in Q2, up 8% from 2024.
The first half of 2025 set a new record at $226.1 bn, a 4% increase over the prior high set in 2024.
“Over the last three years, annuities have repeatedly set new sales records,” said Bryan Hodgens, head of LIMRA research.
He credited favorable economic conditions, product innovation, expanded capital, and stronger demand from both investors and advisors for guaranteed income options. LIMRA now expects total annuity sales to surpass $400 bn in 2025.
PRT may be cooling, but annuities are proving they have momentum to spare.
