Growth of U.S. Pension Risk Transfer Sector in Q4 2025

The U.S. pension risk transfer (PRT) sector saw remarkable growth in Q4 of 2025, with single-premium annuity agreements rising sharply. This surge was largely attributed to plan sponsors seeking to mitigate volatility and reduce long-term liabilities.

According to LIMRA’s US Group Annuity Risk Transfer Sales Survey, single-premium PRT sales, covering both buy-out and buy-in agreements, soared by 132% from the previous year to $28 billion in the fourth quarter. This increase was fueled by buy-in arrangements, which reached a record $12.7 billion, while buy-out sales climbed to $15.3 billion, marking a 32% rise from the fourth quarter of 2024.

Despite higher premium volumes, buy-out agreements slightly declined to 252, a 1% drop year-over-year. In contrast, buy-in agreements grew significantly, with seven deals completed—a 600% increase from the prior year. This trend highlights the growing preference for alternative pension risk management strategies.

LIMRA noted the growing importance of buy-ins as plan sponsors navigated economic uncertainties and balance sheet challenges. Unlike buy-outs, buy-ins allow employers to transfer asset and longevity risks to insurers while maintaining plan administration and liabilities on their balance sheets, offering more strategic flexibility.

For the year, buy-out sales totaled $31.3 billion, a 35% decrease from 2024, with 683 contracts finalized. Buy-in premiums rose dramatically by 372% to $17.5 billion, with 17 contracts—a 70% increase in deals. Overall, PRT transactions covered over 740,000 participants of defined benefit plans in 2025.

Asset growth in the sector remained strong, with buy-out assets totaling $326 billion, a 10% increase, and buy-in assets soaring by 120% to $16.1 billion. Combined, single-premium PRT assets grew by 13% to $342.1 billion.

LIMRA reported that these numbers indicate a maturing PRT market, with increased participation from smaller and mid-sized plan sponsors. About 63% of 2025 transactions involved contracts worth less than $1 billion, reflecting broader engagement. These trends underscore the ongoing demand for pension risk management solutions as organizations work to stabilize funding and manage long-term obligations amidst fluctuating economic conditions.