U.S. pension risk transfer volume for the second quarter was down from the year-over-year period, a LIMRA survey found.
Total dollar volume for pension buyout and buy-in transactions for the quarter ended June 30 was $11.1 billion, down from $16.2 billion in the second quarter of 2023.
For the first quarter of 2024, dollar volume had totaled $14.6 billion, a record for the first quarter of any calendar year, driven primarily by two jumbo transactions totaling $11 billion completed by Verizon Communications Inc., New York, and Shell USA Inc., Houston.
For the second quarter, 183 buyout transactions totaling $9.2 billion and three buy-in transactions totaling $1.9 billion were completed.
“Last year’s second-quarter results were at near record levels," said Keith Golembiewski, assistant vice president, director of annuity research at LIMRA, in a Sept. 5 news release. "Although second quarter 2024 premium results fell short of last year, historically these results are strong. In addition, the number of contracts sold increased 10% year over year, indicating broad plan sponsor interest continues.”
Among the deals announced in the second quarter was 3M Co., St. Paul, Minn., purchasing a group annuity contract from Metropolitan Tower Life Insurance Co. to transfer about $2.5 billion in U.S. pension plan liabilities. The MetLife subsidiary will take on the responsibility of paying benefits to about 23,000 retirees and beneficiaries in 3M's primary U.S. pension plan, effective Oct. 1.
LIMRA surveyed the 21 financial services companies that provide all the group annuity contracts for U.S. corporate pension plans.
