The investment market turmoil, business operations turmoil and low interest rates associated with the COVID-19 pandemic chilled the U.S. pension risk transfer market in the second quarter, according to market survey data from the Secure Retirement Institute.
U.S. issuers of single-premium group annuities reported closing $2.3 billion in pension buy-out sales in the quarter, down 46% from the total for the second quarter of 2019.
- A copy of the Secure Retirement Institute group annuity sales report is available here.
- An article about how a Legal & General executive sees the pension risk transfer market is available here.
The number of buy-out sales fell 35%, year-over-year, to 72.
Single-premium pension buy-in sales fell to $0, from $880 million, according to the pension risk transfer survey participants.
Seventeen companies participated in the survey.
Mark Paracer, an assistant research director with the survey program, said in a comment on the results that the effect of COVID-19 on the economy has clearly affected pension risk transfer sales.