PRT Isn’t Slowing—It’s Evolving: What $7B in Q1 Pension Risk Transfer Sales Signals for Ethical Advisors
If you think the pension risk transfer (PRT) market peaked last year and is cooling off, think again. Q1 2025 PRT sales topped $7.1 billion across 127 deals, covering nearly 100,000 participants. And while that’s down 51% from Q1 2024’s blockbuster, it’s still a 10% climb from 2023—and miles ahead of where we were a decade ago.
The takeaway? Corporate America’s pension risk appetite isn’t fading—it’s maturing. And if you’re a life, annuity, or LTC professional, that matters more than you might think.
The Professional Lens: Why Financial Advisors Should Care
We’re not pension consultants. We’re financial professionals who build income strategies, sell guaranteed solutions, and position insurance products that underpin retirement security.
So why should we care that Verizon or Raytheon just offloaded $1 billion in retiree liabilities to an insurer?
Because pension risk transfer transactions are the single biggest institutional endorsement of annuities in the modern retirement landscape—and they reshape the retirement planning terrain for everyone, including your clients.
Whether you’re writing an immediate annuity for a retired teacher or designing a hybrid LTC solution, this trend affects:
What clients expect from income guarantees
How they perceive insurance company stability
And where they turn when corporate pensions vanish from their balance sheet
The Numbers That Matter: PRT Sales Snapshot (Q1 2025)
$7.1B in total PRT sales
127 contracts (down 13% from Q1 2024)
~100,000 participants covered
57% of transactions were retiree-only carve-outs
Over 3.1M participants covered since January 2020
(Source: LIMRA)
It’s worth noting that this isn’t a trend confined to the Fortune 100. Small and mid-sized plans are increasingly active participants. Retiree-only deals—seen as the “easy button” for risk reduction—are now the dominant strategy.
Strategic Insight: What This Means for Your Practice
Let’s cut to the real opportunity:
PRT sales prove that corporations trust insurance carriers more than their own investment committees when it comes to lifetime income obligations.
So ask yourself:
Why are we still seeing retail advisors hesitate to recommend SPIAs, DIAs, or structured annuity products that offer similar lifetime income guarantees?
It’s time to bridge the confidence gap between institutional and individual annuity adoption. Here’s how:
3 Ways to Elevate Your Practice in a PRT-Driven Market
1. Use PRT Headlines to Reframe the Annuity Conversation
PRT gives you social proof on a silver platter. When clients balk at annuities, ask:
"Did you know that Fortune 500 companies are moving billions into these same insurance guarantees for their retirees?"
You’re not pushing a product—you’re aligning with a de-risking trend backed by CFOs and actuaries.
2. Prepare for the Coverage Gap Wave
Every PRT deal removes a DB benefit from an employee benefits statement. Those displaced retirees—especially in carve-out deals—need income replacement planning.
Get ready to talk income bridges, SPIAs, and lifetime LTC riders. These folks aren’t losing benefits—they’re losing certainty.
3. Adopt Institutional Standards for Product Vetting
If companies are vetting carriers on funding ratios, RBC scores, and ALM rigor, why shouldn’t you? Move beyond sizzle and illustration games. Focus on carrier solvency, claims history, and income stability—not just the "top cap" or "best bonus."
The Ethical Imperative: Are Retirees Protected—or Just Processed?
Now let’s address the elephant in the pension room:
What happens after the liability is transferred?
Many retirees don’t even realize their benefits have been shifted. While they may still receive checks from the insurer, they lose PBGC coverage and corporate oversight. It’s on us to step in and ensure:
Clients understand the terms of their new arrangement
They know who the guarantor is and what protections are in place
We review these policies like we would any annuity or LTC plan—with full transparency
Just because the employer’s off the hook doesn’t mean we should be too.
Red Flags & Regulatory Watchpoints
Not everything in the PRT world is sunshine and solvency.
Litigation risk is rising. Class actions are challenging plan sponsors on disclosure and fiduciary oversight. (Remember, not all transfers are created equal.)
Market concentration is real. A few insurers dominate this space, raising questions about long-term pricing power.
Retail spillover risks could emerge—especially if participants feel confused or undersupported.
Stay sharp. Review your own disclosures. And watch for PRT ripple effects when planning for clients who recently changed employers or lost DB coverage.
Conclusion: From Institutional Insight to Retail Execution
Here’s the big picture: Pension risk transfer sales topping $7B this quarter aren’t a blip. They’re a continuation of a tidal wave that’s reshaping retirement income—and reinforcing the role of insurance as the bedrock of longevity planning.
If massive corporations are turning to annuities to protect retiree income, why are we still letting bad illustrations or outdated mindsets hold us back?
Let’s take the hint.
Let’s use PRT trends to validate what we already believe: that income guarantees matter, and that life insurance and annuity professionals have a bigger role to play than ever before.
