Pension Risk Transfer Digest
Summer 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 June 30, 2025.
Interest Rate Update
See how interest rates trended between April and June 2025 and what it means for PRT pricing.
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Click here to sign up for future emailsF&G's PRT business stats1
Here's a look at our sold premium, won deals and lives onboarded as of June 30, 2025. Check out F&G's Q2 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 6/30/2025. 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 increased around 15 basis points during this period, translating to a lower PRT transaction cost with F&G maintaining our competitiveness relative to our peers.
This chart covers Apr - Jun 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.
How interest rate volatility impacts PRT pricing
Each quarter we share information on the past quarter's interest rates and how they impact PRT transaction pricing. But how much do you really know about the connection between interest rates and PRT? There are three different factors related to interest rates that can impact how much a PRT transaction costs:
- Yields drive price. "Yield" is the return that an insurance company earns from holding a bond. If the yield that an insurer can achieve on its bonds increases, so does the insurer's earnings. That can translate into a lower PRT transaction price - or a higher one, if yields decrease.
- Duration impacts risk. "Duration" is a measure of how sensitive a bond's price is to rate changes. Rate changes on PRT deals with longer duration (like plan termination transactions) will have a larger impact on pricing, compared to PRT deals with shorter duration (like retiree-only transactions).
- Daily pricing is changeable. Market interest rates and bond prices change daily and can be volatile. PRT pricing is based on spot rates and yields available in the market place on the day of a final bid.
Did you know?
Bond prices are changeable:
On average, over a 30-day period, the 10-year U.S. Treasury Bond changes around 10 basis points.
However, a third of the time that 30-day change is around 30 basis points.
Interest rates and bond prices are related. As interest rates increase, bond prices decrease - and vice versa.
Planning for a successful PRT transaction
These factors mean that timing is crucial for PRT transactions. When planning for a transaction, sponsors and their consultants need to balance:
- Market timing opportunities, to take advantage of favorable rate environments
- Operational and regulatory readiness, to be able to move quickly to operationalize a transaction
- Risk management goals, to avoid bringing extra risk or cost into the process
By carefully weighing these considerations, plan sponsors can position their PRT transactions for optimal outcomes.
Describe your role in PRT.
I'm the primary legal point of contact for F&G's PRT business. In my role, I assess legal aspects of PRT transactions, draft documentation to reflect business deals, coordinate with outside counsel and assist with special projects and legal questions as they arise.
What brought you to F&G?
I had worked as a transactional insurance attorney in law firms, spending some of my time on PRT transactions, but I wanted to do more. Coming to F&G gave me an opportunity to help an already-successful business grow. It was important to me to work with a team of knowledgeable colleagues, and I could tell from my first interview that the PRT team consisted of good, smart people who are well positioned to provide high-quality service.
What's your favorite aspect of PRT?
The PRT market is interesting to me because of its interconnectedness. It sits at the cross-section of several bodies of law, and involves not just annuitants and plan sponsors, but lawmakers, regulators and other interested parties. I like how the legal function can help to ensure that we are doing the right things to protect annuitants in pension risk transfer transactions.
How do you spend a typical Saturday?
I have to give the lawyer answer here and say "It depends!" I live in New York City and enjoy a walk in the park and all the other activities the city offers. But you're equally likely to find me relaxing on the rooftop of my building and preparing for the week ahead.
Favorite book, podcast or show?
One book that really spoke to me is The Life of Pi by Yann Martel. It's a story of unlikely partners finding a way to put aside their natural instincts to survive difficult times.
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 consultants and their clients throughout the year to manage new and in-force PRT 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.
