Single premium pension buyouts grew sharply from the third quarter of last year to the fourth, and from 2017 to 2018, according to a new report.
Buyouts grew by 68% from the third quarter to the fourth, rising from $6.2 billion to $10.4 billion, according to the LIMRA Secure Retirement Institute. This is the third time that sales in the fourth quarter have exceeded $10 billion, says LIMRA. However, LIMRA research analyst Euguene Noble puts things in more perspective with the caveat that sales “tend to be larger in the end of the year” and that LIMRA has reported sales in that quarter that exceed $5 billion since 2014.
The last quarter of 2018 was not the first to have noteworthy results, according to LIMRA. The third quarter was only the second in which pension buyout sales exceeded $6 billion in the third quarter. And the fourth quarter of 2018 was the 15th consecutive quarter in which LIMRA reported more than $1 billion in pension buyout sales.
In fact, 2018 itself was noteworthy. LIMRA says that single premium buyout sales totaled $26 billion in 2018, 14% higher than those of 2017. Noble attributed the 2018 figures to “a combination of mid-to-large PRT [pension risk transfer] deals,” as well as two new insurance companies entering the PRT market.
- Log in to post comments