According to Legal & General Retirement America (LGRA), the first quarter of 2023 is expected to “finish strong” with around $6 billion in total market volume for the US pension risk transfer (PRT) market, which will also surpass last year’s record of $5.3 billion.
In their Q1 2023 PRT Monitor, LGRA states that H123 may also set another record with an estimated $23 billion in transactions, compared to the past H1 record of $17.6 billion that was recorded in 2022.
LGRA noted how the first quarter has historically always been a slower quarter for US PRT transactions, however as the market continues to grow, the industry has been seeing an increase in activity to kick off the last few years.
Sheena McEwen, VP, Head of Distribution at Legal & General Retirement America, commented: “While the first quarter is generally quieter than the rest of the year, the fact that we’re seeing an increase in Q1 volume year-over-year demonstrates the consistent growth of the US PRT market as a whole. It’s an exciting time for the industry as de-risking solutions continue to gain traction with plan sponsors.”
Further, with last year’s total market volume being the largest on record at $51.9 billion, LGRA said that it expects 2023 to be “another significant year” for the US PRT market. However, whether the industry sees a similar total to last year will depend on the jumbo transaction activity in H223.
