Legal & General Retirement America (LGRA), a business unit of Legal & General America, has estimated that total premium of the US Pension Risk Transfer (PRT) market for the third quarter of 2025 will be around $9 billion, a decrease compared to $15.5 billion in Q3’24.
During the first half of 2025, the US PRT market reached $11.5 billion in total premium.
LGRA noted that the market has demonstrated steady activity this year, despite the first three quarters of 2025 being slower than last.
The third quarter saw the return of over $1 billion transactions, seeing two transactions exceeding this amount in Q3, which helped lift numbers for the year.
According to L&G Asset Management, America’s pension solution monitor, the average pension funding ratio remains above 100% and was reported at 105.5% in October, leaving plan sponsors in a favourable position to transact.
Looking ahead, LGRA estimates the year to finish between $45–$50 billion in total premium, with Q4’25 projected to be among the largest quarters to date at an estimated $29 billion, setting the stage for H2’25 to be one of the largest on record.
The organisation anticipates three more jumbo transactions to close in Q4, for a combined six jumbo transactions this year.
“One trend to keep an eye on is the rise in buy-in transactions for plan terminations. We expect more than double the number of buy-in transactions to close this year compared to years prior. The reason behind the rise in buy-in transactions relates to plan sponsors looking to lock in pricing early in their de-risking journey,” said LGRA.
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