Legal & General Retirement America (LGRA), a business unit of Legal & General America, expects total premiums in the U.S. pension risk transfer (PRT) market to be around $9 billion in the third quarter of 2025, down from $15.5 billion in the third quarter of 2024.
In the first half of 2025, the total premium volume of the U.S. PRT market reached US$11.5 billion.
LGRA noted that market activity remained stable this year, although growth in the first three quarters of 2025 was slower than last year.
Deal returns exceeded $1 billion in the third quarter, with two deals exceeding that amount in the third quarter, helping to boost volume for the full year.
Average pension funding ratios remain above 100%, with 105.5% reported in October, putting plan sponsors in a favorable trading position, according to U.S. pension solutions monitor L&G Asset Management.
Looking ahead, LGRA expects total premiums to be between $45 and $50 billion this year, with Q4’25 expected to be one of the largest quarters to date, with total premiums expected at $29 billion, setting the stage for the second half of 2025 to be one of the largest quarters on record.
The organization expects to close three more jumbo deals in the fourth quarter, bringing the total number of jumbo deals to six this year.
LGRA said: “One trend to watch is the increase in the number of buy-in transactions resulting from plan terminations. We expect the number of buy-in transactions completed this year to more than double compared to previous years. The reason for the increase in buy-in transactions is related to plan sponsors’ desire to lock in pricing early in their de-risking process.”
The post LGRA expects U.S. PRT market premiums to reach $9 billion in Q3’25 appeared first on ReinsuranceNe.ws.
