Industry Watch 2024
March 07, 2025
Record pension risk transfer (PRT) market as it surpassed $11B in transactions1
A year to remember – the market is now four times larger than in 2015.
Sun Life led the group annuity market in 2024 – that’s 17 years in a row!1
A PRT market that supports transactions of all sizes
Large and jumbo transactions drove almost half the market.
( ) - Number of transactions
Open for business all year round
Over 1/2 of transactions occurred in first half of the year, accounting for 1/3 of market volume.
( ) - Number of transactions
Coming to market early can help guarantee insurer capacity.
Repeat buyers reap the rewards
They contributed to over 38% of market volume in the last 4 years.
Many DB plan sponsors have been transferring risk in phases through multiple annuity transactions, making them “repeat buyers”.
Consultants – expert guides on de-risking
Engaging consultants early can help achieve desired pension de-risking objectives.
A record year for inflation-linked annuities
Over $3B transacted, more than the last three years combined.
Plan sponsors continue to transfer inflation risk to insurers in record numbers.
Buy-ins used as a first step in the journey
Over 70% of our recent annuity buy-ins2 converted to a buy-out.
Buy-ins continue to enable plan sponsors to move quickly on market opportunities.
Pension protection for Canadians
Pension benefits insured for over 35K Canadians – 240K since 2017. Sun Life made more than $1.3B in annual pension payments to over 125,000 Canadians.3
Plan sponsors are reducing risk
Around 130 plan sponsors purchased group annuities. Canadian organizations are redirecting time and attention to their core business.
Looking ahead to 2025
A slower start to the year means more room for deals. With fewer jumbo deals in the pipeline, there is room for additional transactions to be discussed.
Group annuities provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies. Results and information in this infographic are based on Sun Life estimates unless otherwise noted.
1The Secure Retirement Institute Canadian Pension Market report published by LIMRA, March 3, 2025.
2Sun Life buy-in annuity transactions between 2020 and 2023.
3Includes only buy-in, buy-out and longevity insurance contracts.
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