News & Updates
Telus Health reports $11 billion in annuity deals by pension plans, with nearly half in Q4
Canadian defined benefit pension plans purchased $11-bilion worth of annuities during 2024, with almost half of the risk transfer sales coming in the final quarter of the year, according to Telus Health.
The company’s quarterly Pension Risk Transfer Report revealed that fourth quarter transactions totalled $5.2 billion, split between $1.5 billion in buy-in deals and $3.5 billion in buyouts.
The authors of the report noted that the spike in fourth-quarter demand was due to the annuity purchase rate surpassing the accounting rate, meaning that insurers were offering annuity pricing that was more attractive than the value of the pension obligations on company balance sheets.
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