U.S. Pension Risk Transfer Buy-In Sales Surge in Q3 2025 to Record Levels

Single-premium pension risk transfer (PRT) buy-in sales in the U.S. surged by 328% to $4.3 billion in the third quarter of 2025, marking the highest quarterly sales on record, according to LIMRA's U.S. Group Annuity Risk Transfer Sales Survey. Despite a 32% year-over-year decline in overall PRT sales for Q3, the premiums paid totaled $10.6 billion, showing a 137% increase from the previous quarter. Year-to-date, total PRT sales reached $21.6 billion, representing a 48% decrease from the prior year. Buy-in transactions allow pension sponsors to purchase annuities to cover ongoing pension liabilities while keeping both assets and liabilities on their balance sheets, contrasting with buyouts that remove liabilities entirely. Single-premium buyout sales fell 60% to $5.2 billion in Q3 but experienced a 39% gain from Q2. Institutional market factors, such as improved corporate pension funding ratios that reached 105.5% as of October 31, have influenced pension risk transfer activity. The improved funding environment supports plan sponsors seeking to offload pension liabilities through PRT solutions. Legal & General Retirement America's data highlights two notable jumbo transactions in Q3 exceeding $1 billion each, contributing significantly to premium totals despite a quieter jumbo market overall in 2025. Smaller contracts under $50 million have dominated market activity, accounting for over 80% of contracts sold this year, indicating growing interest across a broader range of pension plan sizes. LIMRA reported 183 contracts sold in Q3, a 12% decrease year-over-year, and 441 contracts sold year-to-date, down 18% from the previous year. Buy-in contracts increased modestly both in number and premium volume, with ten buy-in contracts reported in Q3, an 11% rise year-over-year. Buyout contract volume showed a 12% increase in number compared to Q3 2024, though total premiums declined 56% year-over-year for the first three quarters, totaling near $16 billion. Legal & General projects a strong finish for 2025, with anticipated Q4 volume potentially reaching $29 billion. They foresee six jumbo transactions for the year, with buy-in transactions potentially doubling compared to previous years, driven by plan sponsors looking to secure favorable pricing early in their de-risking efforts. This report underscores the evolving dynamics in the U.S. pension risk transfer market amid fluctuating funding conditions, with significant growth in buy-in products and sustained interest in smaller deals. Market participants and insurers may find these trends relevant for strategic planning and capital deployment in pension risk management.