Pension Risk Transfer Digest
Spring 2025
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Business Stats
F&G's PRT business is growing! See our sold premium, won deals and lives onboarded as of March 31, 2025.
Interest Rate Update
See how interest rates trended between January and March 2025 and what it means for PRT pricing.
Did You Know?
What are two ways insurance companies can choose to manage their assets?
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Here's a look at our sold premium, won deals and lives onboarded as of March 31, 2025. Check out F&G's Q1 2025 earnings and our latest PRT sales milestone for more.
Total sold premium:
Total number of won deals:
Total lives onboarded:
1 F&G internal PRT business data as of 3/31/2025. Number of total lives onboarded does not include beneficiaries.
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.
Rates decreased around 25 basis points during this period, translating to a higher PRT transaction cost with F&G maintaining (and slightly increasing) our competitiveness relative to our peers. Any increase or decrease in PRT transaction pricing would be generally consistent with a similar increase or decrease in the pension plan liability, which is similarly determined with a high-quality bond type discount rate.
This chart covers Jan - Mar 2025 and shows how interest rates changed during that time period.
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 $250M in size. Actual final pricing will vary based upon actual transaction details.
3 Average competitor rate based on annuity rates published by BCG Pembridge.
Asset management: internal or outsourced?
Asset management plays a critical role in the success of any life insurance company. Both product pricing and capital management are dependent on the ability to acquire and manage high-quality, fixed income investments with an attractive risk adjusted yield. Insurance companies can choose to manage their assets in two ways — internally, or by partnering with an asset management firm.
F&G manages its investments through a strategic partnership with Blackstone, one of the largest and most successful asset management firms. Here's how our partnership is structured:
- F&G owns the investment strategy and risk limit decisions, and reviews and approves all strategic investment actions
- Blackstone is responsible for generating ideas and selecting securities
- F&G has clear and robust governance; Blackstone does not hold an equity stake in F&G
- Maintains flexibility to add manager diversification over time through reinsurance programs
The evolution of our investment approach
Taking an outsourced approach with a long term, strategic partner has delivered real benefits to our investment portfolio:
|
Internal Asset Management |
Outsourced Asset Management |
|
| Asset classes | 6 asset classes | 14 asset classes |
| Public vs. private allocation | Mostly public allocation | Public and private allocation |
| Diversification | Less diversified sources of spread | More diversified sources of spread |
| Portfolio credit quality | Lower | Higher |
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Describe your role in PRT.
I handle client management after F&G wins a deal, along with managing all the tasks to get the deal to first payment. After the first payment occurs, I coordinate the process around the group annuity contract (GAC) execution and certificate delivery to the participants.
What brought you to F&G?
I found F&G through LinkedIn and became dedicated to finding a way to work with such a great company. I was looking for a place where I could grow and make an impact, and the F&G PRT team was an excellent opportunity for that. I also chose to come to F&G because of the people - even in the interview process, I was able to see the culture expressed very clearly. I have been with F&G for over a year and am excited to be a part of a strong, growing team!
What's your favorite aspect of PRT?
The overall excitement on our team to grow and bring on new business. I appreciate how we adapt to the different volumes of wins and work to make our processes and business better. It's exciting to be a part of a team where there is an opportunity to see your ideas to come to life.
How do you spend a typical Saturday?
I like to start off the day with my husband and 1.5-year-old daughter getting breakfast at a local diner. In the winter, I enjoy spending quality time at home with the family, watching a movie or playing a card game - euchre is one of our favories. In the summer, I enjoy being by the pool and taking my dog for a walk.
Favorite book, podcast or show?
I love to spend time watching shows or movies. A few of my favorite shows are New Girl (for a lighter watch) or Breaking Bad, Animal Kingdom and Prison Break (for more action!)
We'd Love to Hear From You!
More About Our Team
F&G’s PRT team specializes in business development, pricing, investments, operations, legal, finance and reinsurance.
Our team collaborates with PRT consultants and their clients throughout the year as we work to manage new and in-force PRT business activities.
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This 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.
