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The 2013 State of the                                                                                     Pension Risk Tra...
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PRT Infographic

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Visual presentation of 2013 State of the Pension Risk Transfer Market

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PRT Infographic

  1. 1. The 2013 State of the Pension Risk Transfer MarketAnnuity Settlement Rates LDI Glidepaths: increasingly used to hedge pension risk & prepare for 0.60% 1 Year Average: 2.79% pension exit 3 Year Average: 3.49% Annuity Spread 2.61% Current rate Last 36 Months: 2.01% 12 monthly upticks 10 Yr. US Treasury 23 monthly downticks Voluntary Lump Sum TV Windows: increasingly used to initiate a pension de-risking settlement strategyHistorical Sales ($Bil) 39% 3.5 3.2 2.9 (Ex-GM & Verizon) of pension sponsors are considering 3.0 2.5 2.5 voluntary lump sums in 2013 (source: 2.5 2.3 AonHewitt) 2.0 1.7 1.8 1.6 1.5 1.3 1.0 1.0 0.8 0.9 0.8 Annuity Buy-outs: over 60% of frozen pension sponsors have transferring pension risk as their end game objective. (Source: Cutwater Asset 0.5 Management) 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $2,500 Small Contracts Large Contracts 2012 $7,50075+% 60+% Buy-out Salesof all annuity of total placed ($Mil)placements premium from $26,000< $5 million < 5% of contracts 3600 % increase > $50 million in size vs. 2011 Source: Dietrich & Associates

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