Carrier Activity and PRT Predictions: One of Several Insights from Our 2025 PRT Report

To gain additional insight into PRT activities, October Three conducted a survey of insurance companies who participate in the market to gauge the level and type of business they experienced in the first half of 2025. 

Their responses were compiled and cross-referenced with our internal market data to provide insights into how the PRT market performed in the first half of 2025, and to forecast expectations for the rest of the year and the first half of 2026. 

In this article, we touch on one of the insights we discovered through conducting the report, as well as some of the expectations we have for PRT activities going into the new year. For a full list of our discoveries, trends, and data, download a copy of the full 2025 PRT Report below. 

PRT Activity is Expected to Increase in 2026 

Many plan sponsors are believed to be taking a cautious approach to the market, and avoiding any significant financial changes, or have deprioritized their pensions compared to other responsibilities in H2 of 2025. Our report reflected this, as overall PRT activity dropped for H2 of 2025.  

Despite this, many of our respondents predict an increase in demand for PRT in 2026. This prediction is expected to be partially out of preparation, as many carriers were unable to effectively respond to the rise in PRT opportunities that occurred in 2022 and 2023.  

Carriers Expand Capabilities and Underwriting Guidelines 

Learning from the 2022 and 2023 experience, many carriers are expanding their capabilities and adjusting their underwriting guidelines to capture future opportunities. Some changes noted by respondents include adding comingled separate accounts, expanding transaction minimums and maximums, taking on deferreds, and more. 

These changes have allowed some carriers to increase their competitive advantage in 2025 and position them to more effectively capture new opportunities in 2026. 

New Insurers are Expected to Enter the Market

Beyond changes to current carriers, 88% of the respondents believe more insurers will enter the market in 2026 – continuing a trend that has repeated for the past few years.  This is likely in response to the predicted increase in PRT activity following 2025, but it also compounds current competition among insurers.  

The Results of Increased Competition 

Competing carriers could prove beneficial to plan sponsors. However, sponsors should also keep an eye on insurer quality. A new carrier entering the market may lack discipline or administrative experience, presenting greater risks for sponsors and plan participants.  

This will make it more important than ever for plan sponsors to engage independent experts to analyze insurer financials in accordance with DOL IB 95-1. 

Additional Insights and Trends 

This article offers reflections on carrier activity, which is one of several key findings within our report. By downloading the full version, you can expect to receive additional insight into: 

• Terminations vs. lift-outs: What’s shaping sponsor strategy 

• Competitive annuity pricing & further information on evolving underwriting 

• Interest rate movement: Annuity vs. lump sum 

• Funding levels and market timing considerations 

• Buy-ins, bidding dynamics, and more 

• Trends worth watching 

Whether you’re preparing for a transaction or advising clients, timely data-backed insights like these can help you navigate today’s PRT landscape. Click here to download the full 2025 PRT Report.