IMPACT FACTS: Life Insurers’ Expertise at Managing Risk Fuels Group Annuities Growth
Dec 19, 2025
IMPACT FACTS: Life Insurers’ Expertise at Managing Risk Fuels Group Annuities Growth
Dec 19, 2025
According to the ACLI 2025 Life Insurers Fact Book, contributions to group annuities increased to $164 billion in 2024, 41.1% higher than in 2023. This increase was fueled by corporations transferring their pension plan obligations to life insurers via group annuities.
- Last year saw a record number of single-premium pension risk transfer contracts issued and the second-highest $ value ever, according to LIMRA.
- Life insurers are experts at managing long-term financial risk, and corporations are increasingly turning to life insurers to lessen the risks on their own balance sheets.
- About 20 million Americans will turn 65-years-old by 2030. Group annuities ensure retirees will receive the pension income for life that they have been promised.
Andrew Melnyk
Andrew Melnyk is Vice President, Research and Chief Economist at the American Council of Life Insurers (ACLI). He holds a doctorate in economics and is a Certified Business Economist. His functions at ACLI include authoring white papers; managing the production of statistical publications; and managing ACLI’s Research Department. Prior to joining ACLI in 2005, he held positions in academia, government, and the private sector, both in the U.S. and abroad.
