Pension Risk Transfer (PRT) Digest
November 2023

F&G Business Stats

F&G's PRT Business Stats

Since F&G entered the PRT business in 2021, we have experienced significant growth. Here's a look at our sold premium, won deals and lives onboarded as of September 30, 2023.

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F&G Interest Rate Update

PRT Interest Rate Update

Interest rates are a key driver of PRT transaction pricing. See how rates trended in Q3 2023 and what that means for PRT pricing industrywide. 

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F&G Fast Fact

Did You Know?
PRT Fast Fact

How many insurance companies issue PRT in the United States? Test and build your knowledge about the PRT market.

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F&G's PRT Business Stats1

Since F&G entered the PRT business in 2021, we have experienced significant growth. Here's a look at our sold premium, won deals and lives onboarded as of September 30, 2023.

Total sold premium:

 

Total number of won deals:

Total lives onboarded:

1  F&G internal PRT business data as of 9/30/2023

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 4.0% lower PRT transaction price. 

interest rate chart ex

This chart covers July-September 2023 and shows how interest rates increased 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 July 1, 2023 to September 30, 2023.

F&G Fast Fact

Did You Know? | PRT Fast Fact

There are currently 21 different insurance companies that issue PRT in the U.S. This number has risen dramatically in the last decade as the PRT market has grown from a $3 billion annual market prior to 2012 to a more than $50 billion market in 2022.1 The typical PRT transaction process involves a competitive bidding process with multiple insurers. F&G launched its PRT business in 2021.

1 2022 LIMRA US Group Annuity Risk Transfer Survey

Sharon Sutin

F&G PRT Team Member Spotlight:

Sharon Sutin,
AVP, Institutional Pricing Actuary

PRT is a people-based business, and we're proud of the PRT team we've built at F&G ... and are continuing to grow.  This quarter, meet Sharon Sutin, Assistant Vice President and Institutional Pricing Actuary.

Describe your role in PRT:
In my role, I focus primarily on U.S. PRT transactions for buy-outs and plan terminations. As a pricing actuary, my key responsibilities include the setting of pricing assumptions and the financial modeling of transactions. I collaborate extensively with our PRT business development team in evaluating transaction opportunities and pricing delivery, as well as with Institutional leadership on strategy and expansion in the market.

What brought you to F&G?
I spent over a decade in pension consulting services and Pension Risk Transfer, both in business development and pricing. The prospect of helping to establish another strong PRT market player and develop pricing processes from the ground up enticed me over to F&G. Entering into a new product line necessitates a start-up mentality with the agility, innovation and enthusiasm — all of which I felt was abundant on the F&G PRT team!

Favorite aspect of PRT?
What motivates me is the fact that across the market, PRT transactions enable pensioners to be financially secure. I also find the transaction environment exciting and fast paced, which pushes me every day.

How do you spend a typical Saturday?
I am an avid fan of brunch, so we usually start with a good meal and then try to spend time outdoors when the weather permits. For my family, Saturday activities often include hiking (with a toddler, this is more “walking”), checking out a farmers' market, or visiting a local restaurant or brewery.

Favorite book or podcast?
I am a fan of Conan O’Brien’s podcast “Conan Needs a Friend”. It’s a good mix of humor and real-world topics. Sometimes he interviews celebrities and other times he speaks with everyday people about their lives!

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More About F&G's PRT Team

F&G’s PRT team is comprised of a seasoned group of professionals who specialize in business development, pricing, investments, operations, legal, finance and reinsurance.

Our team collaborates with additional 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 Would Love to Hear From You!

Learn more about PRT at F&G

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.