U.S. Pension Risk Transfer (PRT): Annual Report Preview

U.S. Pension Risk Transfer (PRT): Annual Report Preview
January 6, 2026 3 mins

U.S. Pension Risk Transfer (PRT): Annual Report Preview

U.S. Pension Risk Transfer (PRT): Annual Report Preview

U.S. pension risk transfer activity strengthened in late 2025, supported by competitive pricing and growing interest in buy-ins.

2025 Transaction Volumes

After a quiet start to the PRT market in 2025, the fourth quarter was exceptionally busy. There will be more premium settled in the fourth quarter than in the first three quarters combined. We expect $45 billion to $50 billion in premium in 2025, subject to final insurer sales reporting.

Fewer jumbo transactions at the beginning of the year allowed insurers to focus their resources on smaller transactions. New insurers entering the market in 2025 also contributed to more bidders. These dynamics created very competitive pricing, with more retiree lift-outs pricing below PBO than ever before.

Buy-Ins on the Rise

There was a significant increase in pension risk transferred via buy-ins in 2025. We anticipate $15 billion to $20 billion by year end, compared to $3 to $4 billion annually in buy-ins in recent years. Activity continues to grow as buy-ins provide a way to transfer financial risk in the current attractive pricing market.

Buy-in strategies allow plan sponsors to evaluate annuity pricing and test various economic outcomes, most commonly as a precursor to plan termination. Buy-ins can also be used as an alternative investment strategy for plan sponsors looking to de-risk.

More insurers developed their buy-in solution in 2025, with about half of the U.S. PRT market now able to participate on buy-ins. All large market insurers now have a buy-in contract, with more options also becoming available for small and mid-market transactions.

Litigation Update

Lawsuits alleging a breach of fiduciary duties with respect to the selection of a particular insurer(s) in PRT transactions has been ongoing for the last two years. Through December 2025, there are lawsuits filed against 10 plan sponsors and fiduciaries. Half of these cases released decisions on filed motions to dismiss, with more requests being granted than denied. Plan sponsors are seeking appeals on cases where motions to dismiss were denied. We continue to monitor these cases as they progress through the courts.

Aon’s Annual PRT Report

Be on the lookout for our annual PRT white paper that we expect to release in February 2026. This annual report will include details on transaction volumes, pricing and insurer experience, as well as updates on hot topics in the U.S. PRT market.

Contact Us

If you have any questions, please reach out to Megan Nichols, Head of Aon Settlement Solutions, at [email protected].

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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