After a record-breaking $11 billion in pension risk transfer (PRT) transactions in 2024, the first half of 2025 has seen a marked slowdown in activity. With approximately $1.4 billion in annuity purchases completed across Q1 and Q2, market momentum has diverged from recent growth patterns. Interestingly, this slowdown comes at a time when pension plan funding remains historically strong—raising questions about what’s holding sponsors back and what lies ahead for the remainder of the year.
At the same time, developments in market capacity, such as the potential entry of new reinsurers and increasing use of AI-driven operational efficiencies signal longer-term promise. Economic volatility continues to shape the landscape, with equity markets recovering and interest rates rising, creating both challenges and opportunities. As annuity purchase rates now exceed accounting rates, sponsors who are prepared with strong governance and clear decision-making frameworks are well-positioned to realize accounting gains through timely de-risking strategies.
Click here to read the 2025 Q2 review report.