Summary
This document is a market update report on the pension risk transfer (PRT) sector for the year 2024. It details the continued momentum in the PRT market, with reported premiums reaching $51.8 billion, indicating the ongoing significance of this market in pension plan evolution. The report outlines the strong funded status of pension plans and the strategies employed by plan sponsors to mitigate risks, including retiree liftouts and full plan terminations. It highlights the types of transactions in the market, emphasizing retiree liabilities as the primary driver. The report also notes a significant number of litigations against plan sponsors regarding insurer selection, stressing the importance of a robust due diligence process. Furthermore, it discusses the growth of jumbo transactions and the evolving landscape of buy-in products, particularly in underserved markets like Puerto Rico. The document concludes with insights on transaction strategies, including cash settlements and assets in-kind transfers.
