Pension risk transfer is a global trend. Since 2007, more than $430 billion in pension liabilities have been transferred to insurers and reinsurers by defined benefit pension funds in the United Kingdom, United States and Canada alone.1 As the global pension risk transfer market continues to evolve and grow, more companies are recognizing the many benefits of managing and transferring risk. Risk transfer can help secure retirement income for retirees while reducing pension and longevity risk for institutions. It's one of the many ways Prudential improves the financial wellness outcomes that power people to be their best and organizations to be more successful.

More than $430 billion in global pension liabilities have been transferred since 20071

U.S. All Transactions (Buy-outs and Buy-ins) U.K. Buy-outs and Buy-ins U.K. Longevity Risk Transfer Canada All Transactions (Buy-outs, Buy-ins, Longevity Risk Transfer)
$125 billion $138 billion $105 billion $25 billion
A buy-out is a complete settlement of liability and transfers longevity and investment risk A buy-in is a plan investment that perfectly matches liability Longevity risk transfer converts and unknown future liability into a fixed payment over time

1 Data in USD billions. Cumulative totals. Sources: LIMRA, Hymans Robertson, LCP and Prudential analysis as of December 31, 2018.

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