U.S. pension risk transfer sales reached US$14.6 billion in the first quarter of 2024, a 130 per cent increase from the same period in 2023, according to a report by LIMRA.

Single-premium buy-out sales totalled $14.2 billion in the first quarter, up 124 per cent from this period in 2023. There were 146 contracts sold in the first quarter — 26 per cent higher than the prior year  of which 144 were single-premium buy-out sales, up 24 per cent from Q1 2023, totalling US$45.8 billion.

Just two sales were single-premium buy-in contracts, representing $435.6 million. By comparison, there were no buy-in contracts in the first quarter of 2023.

Read: U.S. pension risk transfer sales premium increased 53% in Q4 2023: report

Single premium buy-out assets totalled US$273.3 billion during the quarter, a 14 per cent increase compared to the previous year, while single premium buy-in assets were US$7 billion, up 19 per cent. Combined, single premium assets reached US$280.3 billion, a 14 per cent increase year-over-year.

In a press release, Keith Golembiewski, LIMRA’s assistant vice-president and head of annuity research, said the association expects to see continued momentum for deal-making throughout 2024.

“Demand for PRT solutions continues as favorable economic conditions spur plan sponsors to de-risk their pension obligations,” said Golembiewski. “While there were a few jumbo deals driving the remarkable premium growth, the number of contracts sold was the highest first quarter results seen since LIMRA has been tracking sales, signaling broad plan sponsor interest.”

Read: U.S. pension risk transfer sales increased 39% in Q3 2023: report