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October Three’s 2026 Pension Risk Transfer Trends Report examined activity in the first half of 2026 and gathers insights from insurance carriers and expectations for market activity over the coming quarters.
In this article, we highlight some of the key findings that emerged from that data. Click below for the full report and analysis from October Three.
Higher interest rates and strong equity markets have improved the funded position of many defined benefit plans. As funding surpluses grow, sponsors continue to have opportunities to reduce pension risk through transactions such as plan terminations and lift-outs.
Despite favorable funding conditions and attractive annuity pricing, PRT activity was lower in the first half of 2026 than in the same period last year. Plan terminations continued to dominate the market, while participant lift-outs represented another significant source of activity.
Insurance carriers are seeing increasing activity from plans outside the traditional single-employer market. Church plans have emerged as a particularly notable source of new business, while carriers are also reporting additional activity from multiemployer, public and multiple-employer plans. This expansion could become an increasingly important part of the PRT market in the years ahead.
Competition among insurers continues to intensify as carriers adjust their underwriting approaches and look for opportunities across different segments of the market. Greater competition can put downward pressure on annuity purchase prices, potentially creating favorable conditions for sponsors considering a transaction.
Insurers continue to identify data quality and completeness as major factors affecting the client onboarding process. For plan sponsors, having accurate and complete participant and plan data can help reduce delays and manage costs during the transition of liabilities to the insurance carrier.
Although carriers generally expect full-year 2026 transaction volume and premium to be below 2025 levels, they are somewhat more optimistic about the second half of the year. Insurers expect PRT activity to accelerate, with the market generally continuing to grow beyond
the second half. While technology and AI are expected to play a growing role in managing PRT transactions, particularly around data and due diligence.
Favorable funding conditions will likely continue to support de-risking, while changing insurer strategies, expanding sources of deal flow, and increasing competition are reshaping the market.
October Three’s 2026 Pension Risk Transfer Trend Report provides a closer look at these developments, including transaction activity, pricing, competitive bidding, insurer expectations and the trends that could shape the market in the months ahead.
Download the full 2026 Pension Risk Transfer Trend Report to explore the data and learn more about what’s driving the PRT market.