Sales of group annuities for the U.S. pension risk transfer market may be cooling.
Insurers completed $5.8 billion in pension risk transfer transactions during second quarter, down from $8.2 billion in the second quarter of 2018, according to a new batch of group annuity issuer survey data from the LIMRA Secure Retirement Institute.
Seventeen insurers participated in the latest group annuity issuer survey.
Employers can use group annuities to transfer pension risk in two ways. They can transfer full responsibility through pension buy-out transactions. They can also use group annuities to manage pension obligations they keep, through pension buy-in arrangements.
Single-premium pension buy-out sales fell to $4.7 billion in the second quarter, down from $6 billion in the year-earlier quarter.