The Canadian pension risk transfer market reached roughly $6.8 billion in 2025, down from a record $11 billion in 2024, according to a new report by Sun Life Financial Inc.
The report found these transactions consisted of risk transfers valued at less than $800 million, noting 115 defined benefit plan sponsors purchased group annuities in 2025, including 90 plan sponsors that purchased group annuities for the first time.
Read: DB pension plan sponsors resuming de-risking plans in 2026: expert
For the second year in a row, inflation-linked annuity purchases made up more than $1 billion of market volume, with transactions ranging from less than $1 million to more than $400 million. While the first and second quarters of 2025 saw $1.55 billion in transfers, the remaining $5.27 billion took place during the third and fourth quarters.
The report also noted a total of 12 Canadian DB plan sponsors have transferred more than $1 billion of pension liabilities to insurers, including three plan sponsors since 2023. While a few organizations passed the $1-billion mark in a single transaction, many took a phased approach with as many as 14 transactions.
Read: Canadian pension risk transfer market declines 40% in 2025: report