F&G nears $5 billion in institutional market sales, boosted by pension transfers

Des Moines-based F&G Annuities & Life Inc. recently completed two large pension risk transfer transactions that have propelled the company’s institutional market sales to nearly $5 billion since the launch of this channel. produced by F&G just over a year ago. Since entering the institutional market last year, F&G has entered into 10 pension risk transfer agreements, which has generated $2.3 billion in sales and 44,000 total participants who will receive their pension payments from F&G. . In August, F&G completed PRT transactions representing $620 million in pension obligations and 13,000 certificate holders, including a first recurring customer transaction, the company said in a statement. Pension buyout plans allow organizations to reduce retirement costs by transferring pension liabilities to insurance companies that cover the promised benefits. F&G is among several Iowa-based insurers that use pension risk transfer agreements to diversify their business beyond selling annuity products for retirement savers. F&G said its institutional sales volume was also driven by continued opportunistic growth in the market for notes backed by financing agreements, which drove sales of $700 million in the first half of 2022.