Group pension buyout sales for the second quarter of 2016 amounted to $1.035 billion, LIMRA reports. This marks the fifth consecutive quarter with sales of $1 billion or more.
Not only that, said LIMRA Secure Retirement Institute analyst Michael Ericson, “Pension buyout activity for the first six months of this year is higher than it has been in the last five years,” attributing that result to “more companies of all sizes looking to transfer their pension risk.”
LIMRA says that this year’s second quarter result was unusual in that it has found that second quarter pension buyouts generally are not strong. The exceptions in the last four years are this year and 2015, when pension buyout sales came to almost $4 billion. The 2015 figure was largely due to Kimberly-Clarke’s transferal of its pension into group annuity contracts with two insurance companies, LIMRA says.
The overall trend has been for higher sales, LIMRA data shows, since the last quarter of 2014. Since then, only one quarter has had buyout sales of less than $1 billion.
LIMRA bases its figures on 13 companies that provide single premium buyout sales.
Not only that, said LIMRA Secure Retirement Institute analyst Michael Ericson, “Pension buyout activity for the first six months of this year is higher than it has been in the last five years,” attributing that result to “more companies of all sizes looking to transfer their pension risk.”
LIMRA says that this year’s second quarter result was unusual in that it has found that second quarter pension buyouts generally are not strong. The exceptions in the last four years are this year and 2015, when pension buyout sales came to almost $4 billion. The 2015 figure was largely due to Kimberly-Clarke’s transferal of its pension into group annuity contracts with two insurance companies, LIMRA says.
The overall trend has been for higher sales, LIMRA data shows, since the last quarter of 2014. Since then, only one quarter has had buyout sales of less than $1 billion.
LIMRA bases its figures on 13 companies that provide single premium buyout sales.
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