premium pension buy-out product sales surpassed $10.4 billion in the fourth
quarter of 2018, nearly equalling Q417, according to a quarterly survey by the
LIMRA Secure Retirement Institute (LIMRA).
This is only
the third time Q4 sales have surpassed $10 billion, LIMRA says.
“Sales tend to
be larger in the end of the year. We’ve seen buy-out sales over $5 billion in
the fourth quarter going back to 2014,” said Eugene Noble, research analyst,
marks our fifteenth consecutive quarter with over $1 billion in sales.”
In 2018, single
premium buy-out product sales peaked at $26 billion, over 14% higher than 2017.
premium product sales (including buy-ins) exceeded $11.3 billion in Q418. For
the year, total single premium product sales were $27.3 billion.
“A big driver
of the 2018 buy-out sales was a combination of mid-to-large PRT deals,” said
Noble. “We also saw two new insurance companies enter the PRT market this
total assets of buy-out products were $135.5 billion in 2018, more than 18%
higher than prior year.
participants reported 29,632 contracts sold as of 31 December 2018.
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