Coming to America
While U.K. companies have dominated the pension risk transfer market, U.S. firms increasingly are shifting liabilities to insurers and reinsurers.
U.K. at the fore: Since 2007, more than $180 billion in pension transfer transactions have been completed in the U.K. and about $70 billion in the U.S.
On the upswing: The number of U.S. buyout contracts sold through the first three quarters of 2015 is up 22.6% from a year earlier (195 vs. 159).
Premiums rising: Increases in Pension Benefit Guaranty Corp. premiums are likely to drive demand for U.S. risk transfers.
Big deals: General Motor's 2012 buyout is by far the largest U.S. deal to date. Kimberly-Clark's $2.5 billion deal this year is the fourth-largest U.S. deal on record.
*Used average exchange rate for year. **Through Q3. 1: Two separate transactions. 2: Flexible buyout; final amount not yet known. Sources: Lane Clark & Peacock, LIMRA, Pension Benefit Guaranty Corp., Prudential
Compiled and designed by Timothy Pollard and Gregg A. Runburg
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