“The PRT market continues to expand,” said Keith Golembiewski, assistant vice president and head of annuity research at LIMRA. “While recent interest rate declines and equity market volatility may dampen sales later in 2025, greater plan sponsor awareness of these solutions will keep interest high and sales above pre-pandemic levels.”

During the fourth quarter, single-premium buy-out premium totaled $11.6 billion, down 7% from the fourth quarter of 2023. More than 250 contracts were finalized during the quarter, which was 9% lower than Q4 2023. For the year, buy-out premium increased to $48.1 billion, a 16% increase, with 784 buy-out contracts, up 3% year over year. LIMRA said that marks a record-high number of buy-out contracts sold in a year.

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There was one single-premium buy-in contract during the fourth quarter, representing $377 million in premium. That compares with no buy-in contracts closed during the fourth quarter of 2023, said LIMRA. For the year, there were 10 buy-in contracts sold, up from eight in 2023. Buy-in premium totaled $3.7 billion for 2024, a 5% decrease for the year.

According to LIMRA, single-premium buy-out assets reached $296.5 billion in 2024, up 13% year over year. Single-premium buy-in assets were $7.2 billion, up 7% from 2023. Combined single-premium assets were $303.9 billion, a 13% year-over-year increase.

A group annuity risk transfer product, such as a pension buy-out product, allows an employer to transfer all or a portion of its pension liability to an insurer. This allows employers to remove the liability from their balance sheets and reduce the volatility of the funded status, said LIMRA.