U.S. pension risk transfer premiums among the most competitive bidding processes dropped below 100% in January, a study by actuarial and consulting firm Milliman showed.
According to a report about the Milliman Pension Buyout index, the estimated average premium among the most competitive rates was 99.3% as of Jan. 31, down from 100.2% as of Dec. 31.
It is the first time since August the estimated average premium fell below 100%. That estimated average premium was 96.9% as of Aug. 31.
Also during January, the average annuity purchase cost across all insurers remained at 102.5%.