Mark Paracer, Assistant Research Director of LIMRA Pension Research, said in a news release on Wednesday: “Increased visibility of plan sponsors, desire to de-risk pension liabilities, rising interest rates and rising costs to maintain plans are likely to drive expansion in the U.S. market. is expected to continue propelling the U.S. market into 2023.”
A total of 145 annuity buyout contracts were sold in the third quarter, according to the news release. In his nine months through Sept. 30, LIMRA recorded his 362 buyout deal sales.
LIMRA also said no buy-in deals were completed during the third or second quarter. In the first quarter, he had four buy-ins totaling $2.7 billion. Pension buy-in transactions, where the insurance company reimburses the insurer for the benefits it pays to retirees and beneficiaries, are very common in the UK but rare in the US.
LIMRA surveyed 19 financial services firms that offer group annuity contracts for all US corporate pension plans.
