Legal & General’s Global Pension Risk Transfer Monitor Sees Record Breaking 2022 in US Market and Unprecedented Demand in UK

Global PRT-market momentum continues in the US and UK markets.

The Legal & General Group’s Global Pension Risk Transfer (PRT) businesses – Legal & General Retirement America (LGRA), a leading provider of pension risk solutions in the United States, and Legal & General Retirement Institutional (LGRI), the United Kingdom’s longest-serving active PRT provider – today released the latest edition of the Global PRT Monitor, which analyzes industry trends and market outlooks in the UK and US.

The Monitor reported a historic year in the US PRT market with an estimated $53 billion in total market volume, significantly exceeding the 2021 record of $38 billion. The first three quarters of 2022 were all record-breaking quarters while estimates for Q4 2022 are around $9 billion – a decrease from the $12.8 billion recorded in Q4 2021.

The record-breaking growth in the US was driven by large transactions, with nine individual transactions near or over the $1 billion mark closing throughout the course of the year. The improved funded status for pension plans and recent market volatility also contributed to the surge in PRT activity.

In the UK, the Monitor reported that more than £25 billion of retirement income was secured with insurers in 2022. Around £12 billion was secured in H1 and a surge in transactions in the second half of the year translated to another strong performance. Five transactions of over £1 billion were announced publicly during the year.

The Monitor observed that improved pension scheme funding levels have greatly accelerated the journey to buyout for many pensions schemes and noted that some market participants have projected demand for buy-ins and buyouts could total £200 billion over the next few years.

The complete Legal & General PRT Monitor US and UK PRT Market Overview can be found here.

Sheena McEwen, VP Head of Distribution, Legal & General Retirement America

“We saw yet another record-breaking year in the US PRT market, signaling the growing strength and resiliency of the market. As the market has evolved, we’ve seen volumes continue to rise and more transactions being announced publicly – which is helping to broaden knowledge and understanding of PRT as a key risk mitigation strategy for US insurers. Momentum from 2022 has carried over into 2023 and we are anticipating another busy H1 with several transactions over $1 billion already in the pipeline.”

John Towner, Head of UK Pension Risk Transfer, Legal & General Retirement Institutional

“Increasing numbers of UK pension schemes are looking to insurance to provide security to their members. Our market has continued to deliver for pension schemes in all varieties of environments. We are excited for what we expect will be a busy few years ahead.”

About Legal & General

Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.

* As at 31 December 2021

About Legal & General Retirement America

Legal & General Retirement America (LGRA) specializes in customized pension risk solutions for institutional clients in the US market. Established in 2015, Legal & General Retirement America is a business unit of Legal & General America, Urbana, MD. Legal & General America life insurance and retirement products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states, the District of Columbia and Puerto Rico. William Penn products are distributed exclusively in New York; Banner does not solicit business there. The Legal & General America companies are part of the worldwide Legal & General Group. CN02242023-15

About Legal & General Retirement Institutional

Legal & General Retirement Institutional (LGRI) works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions.

Our UK Retirement annuity book stands at over £89 billion as at 31 December 2021, of which over £28 billion is invested in direct investments that deliver positive social and environmental impacts, such as clean energy and affordable housing.

Our Client Services’ 12-month rolling Net Promoter Score (NPS) is above +70, which is widely regarded as being at a “world class” level.

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