The U.S. pension risk transfer market had a very strong first quarter, with an estimated $6 billion in total volume, according to a report from Legal & General Group.

The estimate exceeds the previous record for a first quarter set last year at $5.3 billion. Legal & General noted that PRT activity has traditionally been the slowest during the first half of the year and projects a total of $23 billion in volume for the first half of 2023. The majority of U.S. PRT transactions have historically been completed in the third and fourth quarters of calendar years.

“While the first quarter is generally quieter than the rest of the year, the fact that we’re seeing an increase in Q1 volume year-over-year demonstrates the consistent growth of the U.S. PRT market as a whole. It’s an exciting time for the industry as derisking solutions continue to gain traction with plan sponsors,” said Sheena McEwen, vice president, head of distribution at Legal & General Retirement America, in a news release Tuesday.

Total market volume for 2022 was an all-time record of $51.9 billion, according to Legal & General.

While the first quarter estimate of $6 billion is significant, the second quarter has already exceeded that total with a single transaction. AT&T Inc., Dallas, announced on May 1 it had completed an agreement to purchase group annuity contracts from two Athene Holding subsidiaries to transfer $8.1 billion in U.S. pension plan liabilities. In August, Athene Annuity & Life Co. and Athene Annuity & Life Assurance Co. of New York will take on the responsibility for paying benefits to about 96,000 AT&T participants and beneficiaries.