The U.S. pension risk transfer market experienced an estimated $27 billion in volume in the third quarter, which should lead to a new annual record exceeding $50 billion, according to a report from Legal & General Group.
It was the second-largest quarter on record, behind only the fourth quarter of 2012 when General Motors Co., Detroit, transferred $29 billion to Prudential Insurance Co. of America via a pension buyout transaction, according to the insurer's latest Pension Risk Transfer monitor. That quarter notched $36 billion in volume.
During the third quarter, International Business Machines, Armonk, N.Y., purchased group annuity contracts from Prudential and Metropolitan Life Insurance Co. to transfer a total of $16 billion in U.S. pension plan liabilities. The purchases, which closed Sept. 13, transferred the benefit-paying responsibility for about 100,000 retirees and beneficiaries covered by the IBM Personal Pension Plan.