Navigating a complex and rapidly growing PRT market
The U.S. pension risk transfer market continues to see strong transaction volumes, creating significant opportunities for insurers and reinsurers to deploy capital. At the same time, competition is intensifying and execution requirements are evolving, placing greater emphasis on pricing discipline, risk selection, and efficient deal delivery.
Market outlook
- 2025 closed at nearly $50 billion in transaction volume, broadly in line with 2024 despite headwinds from pending litigation.
- Activity has been more measured at the start of 2026, as some plan sponsors remain cautious amid ongoing legal uncertainty.
- In addition, a combination of broader cost-management pressures across plan sponsor organizations and accelerated transaction activity in late 2025 have led to some short-term fatigue in the market, particularly in Q1 2026
- The market continues to evolve, with two new entrants in 2025 increasing competition among direct writers and placing greater pressure on pricing discipline and execution.
Despite these near-term dynamics, we expect continued strength in PRT activity through 2026, supported by strong funding levels and sustained sponsor focus on long-term de-risking.
Increasingly, plan sponsors are looking to completely offload their pension obligations rather than conducting lift-outs of certain subsets.”Caitlynn GreenfieldSenior Director, Insurance Consulting & Technology
Helping clients navigate the market
WTW’s experts support decision making and business objectives in several ways:
Market entry support
- Insights into the market, including market landscape, pricing process details and pricing considerations
- Assumption and methodology benchmarking, informed by WTW’s proprietary PRT Pricing and Management Surveys (updated biennially)
- Provision of a representative sample case (based on a completed transaction), with detailed feedback on pricing approach and competitiveness
Transaction support
- Production of all liability and reserve cash flows for initial and any subsequent bids
- Development of applicable mortality assumptions used to value the targeted qualified pension plan
- Support and guidance related to developing an appropriate pricing methodology, including pricing metrics, identification of key risks, development of associated sensitivities, and determination of applicable reserve and capital levels
Deferred life expertise
- Guidance built on decades of defined benefit plan expertise, to help clients understand specific pension plan designs and considerations when setting deferred life assumptions
A unique combination: Insurance pricing and retirement expertise
WTW serves as the global retirement actuary to more employers in the Global Pensions and Investments 300 than any other company.
Over the past several years, we have served as the largest placement advisor in the U.S. pension annuity placement market.
Leveraging our multiple PRT pricing assumption survey results, we assessed the pricing methodology and assumptions of several new entrants to the U.S. PRT market relative to industry practices.
For several current large players in the U.S. PRT market, we provide ongoing bid support on PRT cases, including developing plan cash flows and setting a customized mortality assumption, leveraging off of our work on the WTW Geospatial Mortality Model (GMM).
We have undertaken multiple projects involving pricing and product development for fixed annuities, including immediate annuities. As part of these projects, we have developed access to information and views on key pricing drivers and approaches to asset liability management.
For several potential new entrants to the U.S. longevity market, we provided a PRT market overview and outlined key considerations for them to participate in the market, including sample quote analysis.
For a current player looking to increase competitiveness on larger cases, we provided guidance on setting mortality assumptions for several cases.
For a new entrant to the PRT market, we undertook a validation of its benefit projection and pricing model.
