Pension Risk Transfer (PRT) Digest
May 2024
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PRT Business Stats
Since F&G entered the PRT business in 2021, we have experienced significant growth. Learn about our latest milestone and our stats as of March 31, 2024.
Interest Rate Update
Interest rates are a key driver of PRT transaction pricing. See how rates trended in Q1 2024 and what that means for PRT pricing industrywide.
Did You Know?
Build your knowledge about PRT. How did PRT industry sales perform in 2023, and what can we expect from 2024?
F&G's PRT Business Stats1
This month we announced a major milestone - $5 billion in cumulative pension risk transfer sales, and over 100,000 participants, including beneficiaries, who receive their pension payments from F&G.
This milestone reflects F&G's growth since entering the PRT business in 2021. Here's a look at our sold premium, won deals and lives onboarded as of March 31, 2024.
Total sold premium:
Total number of won deals:
Total lives onboarded:
1 F&G internal PRT business data as of 3/31/2024. Number of total lives onboarded does not include beneficiaries.
PRT Interest Rate Update1,2
Competitive pricing is a key component of product success. PRT pricing is correlated with changes in high-quality corporate bond yields (consistent with how pension plan liabilities are valued for funding, accounting, etc.) and changes daily based on yields available to the issuing PRT insurer. Rate increases and spread widening drive lower PRT cost — and vice versa.
Yields rose during this period, which translates to an approximately 2.0% lower PRT transaction price.
This chart covers January-March 2024 and shows how interest rates changed during that time period.
1 Information shown above is illustrative and not intended to represent F&G's actual PRT transaction pricing. Historical interest rates are not indicative of future rates.
2 Single effective rate based on U.S. Treasury yield curve and AA corporate bond spreads from sample PRT liability cash flows during the period of January 1, 2024 to March 31, 2024.
Did You Know? | PRT Fast Facts
LIMRA recently published PRT sales information for the year 2023. Here are three key highlights:
- Strong level of total premium sold in 2023. The 2023 PRT sales of $45.8 billion was the 2nd highest amount of annual sales since LIMRA began conducting their U.S. Group Annuity Risk Transfer Sales Survey.
- Materially higher amount of deals placed in 2023. 850 deals were placed in 2023, the highest annual amount of deals ever sold.
- 2024 expected to be similar. LIMRA expects a record-level number of deals and sales to continue this year.
Describe your role in PRT:
I lead the conversion of sold PRT deals from their company and current administrator to F&G. Immediately after our sales team executes a commitment agreement with a new client, the deal transitions to my team. We manage the receipt of the contract premium and administrative data and work on participant communications, data issues, call center and website readiness and ultimately making payments directly to the annuitants. Once first contract payments are in place, we manage the process of executing the group annuity contract and sending the annuity certificates to the new population of lives we now protect.
What brought you to F&G?
Three aspects of F&G were attractive to me when I was considering joining the team. First was the opportunity to use my many years of experience in the PRT space to help this team be successful. Second was a recognition that this newly-formed team was unified in getting this business to a successful place. And third, an appreciation for the culture at F&G and how many people on the team really like being here.
Favorite aspect of PRT?
I love how dynamic and different every PRT deal is. Different consultants, different industries and different characteristics guarantee that no two deals will be alike. From the outside, operations work can seem mundane and boring, but in PRT, there is no such thing.
How do you spend a typical Saturday?
After a 7 a.m. session with my trainer, it's all about chores! House cleaning, bill paying, yard working, food shopping, appointment making and whatever else I need to do to keep up with non-work work. I'm usually able to watch a sporting event or two, and end the day with something fun or time with family.
Favorite book, podcast or show?
I am a true crime junky and love spending my downtime watching true crime documentaries or Dateline. Hit me up for some recommendations if you are interested!
More About Our Team
F&G’s PRT team is a seasoned group of professionals who specialize in business development, pricing, investments, operations, legal, finance and reinsurance.
Our team collaborates with F&G corporate staff and external PRT consultants and their clients throughout the year as we work to manage new and in-force PRT business activities.
We'd Love to Hear From You!
Learn more about PRT at F>his material is intended for informational purposes only and is only intended for use by institutional plan sponsors and industry professionals.
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F&G is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York and, in New York only, Fidelity & Guaranty Life Insurance Company of New York. Each Fidelity & Guaranty Life company is solely responsible for its contractual commitments.
Guarantees are based on the claims paying ability of the issuing insurer, Fidelity & Guaranty Life Insurance Company, Des Moines, IA.
