U.S. pension risk transfer sales totaled $10.4 billion in the third quarter, down for the year-over-year period, although there were a record number of contracts executed, a LIMRA survey found.

The total volume in the third quarter fell below the record-setting third quarter of 2022, which saw a total of $26.1 billion in volume, according to the survey.

However, the third quarter of 2022 experienced the record volume due to a single transaction. International Business Machines, Armonk, N.Y., purchased group annuity contracts from Prudential Insurance Co. of America and Metropolitan Life Insurance Co. to transfer a total of $16 billion in U.S. defined benefit plan liabilities in September 2022. Subtracting that transaction, this year’s third quarter was in line with the third quarter of 2022.

For the most recent period, there were 203 buyout contracts completed, worth $8.1 billion in total volume. The number of contracts was a new record recorded by LIMRA.

“After record-breaking new premium collected a year ago, third quarter 2023 sales fell back to a more moderate level. Despite the decline in premium, the record number of contracts signals broader interest with mid-sized and small plans,” said Keith Golembiewski, senior director, strategic initiatives at LIMRA, in a Dec. 19 news release. “The economic environment continues to deliver strong funding statuses, which is encouraging more plan sponsors to think about derisking their pension liability.”

Year to date as of Sept. 30, there was a total of $28.9 billion in buyout volume. LIMRA, a trade association for the insurance and related financial services industry, had measured an all-time record of $48.3 billion in 2022.

Also during the third quarter, there were four buy-in contracts completed worth $2.3 billion. There was a total of $1.6 billion in volume in the second quarter and no transactions in the first quarter. Total U.S. buy-in volume for 2022 was $3.5 billion.

Pension buy-in transactions, in which an insurer reimburses the company for benefit payments the plan will make to its retirees and beneficiaries, are very common in the U.K., but rare in the U.S.

LIMRA surveyed the 21 financial services companies that provide all the group annuity contracts for U.S. corporate pension plans.