Pension Buy-Out Product Sales Remain High in 3rd Quarter

Sales of single-premium pension buy-out products broke records again in the third quarter of 2017, the second consecutive quarter with such results, according to a recent report. This comes on the heels of sales in the previous quarter that were the highest in 15 years.

According to the LIMRA Secure Retirement Institute, single-premium pension buy-out product sales in the United States in the third quarter amounted to $6.4 billion, $2.3 billion higher than in the second quarter. And so far for 2017, domestic single-premium pension buy-out product sales have amounted to $11.9 billion.

The third quarter also was the 10th consecutive quarter with sales of more than $1 billion. Further, buy-out products’ combined assets came to just under $104 billion, more than 10% higher than their total value in the third quarter of 2016. For the year through the end of the third quarter, sales of single premium buy-out products are 47% higher than those of the same period in 2016.

LIMRA also reports that 80% of employers in its study are interested in pension risk transfer. Further, as in the second quarter of 2017, more than 80% of employers with defined benefit plans have funding levels under 90%.