Pension Risk Transfer Digest

Did you know?

Seasonality in the PRT market may create opportunities for early movers

The pension risk transfer (PRT) market has developed a clear seasonal pattern that plan sponsors, advisors and practitioners should understand when evaluating transaction timing. While activity occurs throughout the year, volume is far from evenly distributed. In a typical year, roughly one-third of total PRT volume is executed in the first half, while the remaining two-thirds is concentrated in the second half—often heavily skewed toward the fourth quarter.

Understanding this seasonality can materially impact both execution and outcomes. Plan sponsors that approach the market late in the year often encounter tighter insurer capacity, more selective underwriting, and longer timelines due to operational strain. In contrast, entering the market earlier can allow for more engagement, potentially sharper pricing, and smoother execution.

Key takeaways for plan sponsors

In summary, while the second half of the year dominates PRT activity, that concentration can create friction for plan sponsors entering the market during peak periods. For many plans, the optimal strategy is to begin the process early in the year, when insurer capacity is more available and competition may yield better outcomes. This is especially important for complex plans, those with a high proportion of deferred participants, or plans with significant New York exposure, where execution demands are greater and early engagement can make a meaningful difference.

PRT rate update^1,2,3

Pricing matters and drives product success.

PRT pricing follows high-quality corporate bond rates, just like pension liability values do. When interest rates go up, PRT costs go down. When rates drop, costs rise. Prices change daily based on what insurers can earn in the market.

Rates ended Q2 nearly 50bps above Q1, translating to a moderately lower PRT transaction cost with F&G maintaining our competitiveness relative to our peers.

¹ All rates based on 7 year duration all retiree population.

² F&G sample rate represents preliminary pricing for a hypothetical mixed collar transaction less than $100M in size. Actual final pricing will vary based upon actual transaction details.

³ Average competitor rate based on annuity rates published by BCG Penbridge.

Describe your role in PRT.

I lead the Pension Risk Transfer Sales Team, overseeing all aspects of PRT bid opportunities, monitoring the overall PRT marketplace, participating in intermediary due diligence and marketing, and collaborating closely with pricing and operations colleagues to optimize execution.

What brought you to F&G?

Prior to joining F&G, I spent 17 years in pension consulting, advising plan sponsors on managing pension costs and risks through integrated investment, funding, plan design and risk transfer strategies.  I was always interested in analyzing trends in insurer participation and pricing across a range of deal sizes and deal types.  This role at F&G allows me to leverage my PRT consulting background to focus on enhancing bid opportunities in an increasingly competitive market.  I’m proud to be part of a relatively small PRT team driving significant growth for the broader F&G business.

What's your favorite aspect of PRT?

The gamesmanship is fascinating.  F&G has a strong reputation for winning with low price, so I enjoy being part of deciding which deals to pursue, and seeing how the underwriting, investment and profitability come together to target a winning bid against our competition, particularly when information on other bidders is very limited.

How do you spend a typical Saturday?

A typical Saturday for me involves attending one or two sports events for my two kids age 7 and 12, grilling out, and staying up late watching an action or sci-fi flick on Netflix. I enjoy being outdoors, camping, canoeing and hiking when the Missouri weather is nice in spring and fall.

Favorite book, podcast or show?

I could jump into any episode of Arrested Development and find something to laugh about.  Timelessly awkward, dysfunctional, and absurd.