Latest news with #milliman.com
Yahoo
08-07-2025
- Business
- Yahoo
Milliman analysis: Corporate pension funding improves in June to highest level since October 2022
Milliman 100 PFI plans close second quarter at 105.1% funded after strong market returns SEATTLE, July 08, 2025--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today released its monthly Milliman 100 Pension Funding Index (PFI), which analyzes the 100 largest U.S. corporate pension plans. During June, robust monthly returns of 2.63% were offset by a 19-basis-point decrease in discount rates to nudge the PFI funded ratio up from 104.9% at the end of May to 105.1% as of June 30. While small, this improvement marked the third straight month of funding gains and a significant increase from the 103.6% funded ratio seen at the start of 2025. Milliman PFI plan assets rose to $1.281 trillion during the month, from $1.254 trillion at the end of May, while the projected benefit obligation increased from $1.195 trillion to $1.219 trillion during the period. Discount rates fell to 5.52% in June, from 5.71% in May and 5.59% at the beginning of the year. "The second quarter of 2025 was a win-win for pensions from both sides of the balance sheet, as market gains of 3.42% drove up plan assets while modest discount rate increases of 2 basis points reduced plan liabilities and resulted in the highest funded ratio since October 2022," said Zorast Wadia, author of the PFI. "However, if discount rates decline in the second half of the year, plan sponsors will need to be ever more focused on preserving funded status gains and employing prudent asset-liability management." Looking forward, under an optimistic forecast with rising interest rates (reaching 5.82% by the end of 2025 and 6.42% by the end of 2026) and asset gains (10.53% annual returns), the funded ratio would climb to 111% by the end of 2025 and 125% by the end of 2026. Under a pessimistic forecast (5.22% discount rate at the end of 2025 and 4.62% by the end of 2026 and 2.53% annual returns), the funded ratio would decline to 101% by the end of 2025 and 92% by the end of 2026. Read this month's complete Pension Funding Index or Milliman's full range of annual Pension Funding Studies. To receive regular updates of Milliman's pension funding analysis, contact us at pensionfunding@ About Milliman Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at View source version on Contacts Zorast WadiaMilliman, +1 646 473 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Automotive
- Yahoo
Milliman AccuRate Fleet, telematics risk scores for insurers and fleet managers, now approved in 40 states across the US
SEATTLE, July 01, 2025--(BUSINESS WIRE)--Milliman, Inc., a leading global consulting and actuarial firm, is pleased to announce that Milliman AccuRate Fleet® telematics risk scores have been approved in 40 states across the U.S. This milestone marks a significant advancement in the integration of telematics data into fleet insurance underwriting and risk management. Milliman AccuRate Fleet is a usage-based insurance score designed to enable more accurate pricing of fleet exposure and driving behavior risk. After 20 days of driving activity, AccuRate Fleet calculates a risk score between zero and 1000, similar to a credit score. Based on over one billion miles of commercial auto driving data, insurers can leverage AccuRate Fleet's telematics risk scores for real-time underwriting, customer segmentation and retention, and risk management. And because AccuRate Fleet's scores are filed through Milliman Appleseed, insurers can now access pre-filed scores that have been approved by regulators in 80% of the U.S. "We are thrilled to receive approval in 40 states for our AccuRate Fleet telematics risk scores," said Peggy Brinkmann, Principal and Consulting Actuary at Milliman. "This approval is a testament to the reliability and effectiveness of our telematics solutions in transforming fleet insurance underwriting. Our technology not only helps insurers better understand and manage risk but also rewards fleet operators who prioritize safe driving practices." The AccuRate Fleet platform empowers fleet managers to make informed decisions to improve safety and efficiency while potentially reducing insurance costs. With detailed analytics and reporting capabilities, fleets can gain valuable insights into driver performance, identify areas for improvement, and implement targeted training programs. Learn more about Milliman AccuRate Fleet and its telematics risk scores or contact with questions. About Milliman Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at View source version on Contacts Peggy BrinkmannMilliman, +1 415 394 3726Email:
Yahoo
20-06-2025
- Business
- Yahoo
Milliman analysis: Public pension funding surges in May after pause in tariffs drives 2.4% monthly investment gain
Milliman PPFI funded ratio jumps to 81.1% after best monthly returns in more than one year SEATTLE, June 20, 2025--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today released the latest results of its Public Pension Funding Index (PPFI), which analyzes data from the nation's 100 largest public defined benefit plans. May's pause in trade policy changes and proposed tariffs caused markets to surge, resulting in a $98 billion increase in the PPFI funded status. In aggregate, the plans saw estimated investment returns of 2.4% for the month, with individual plans' estimated returns ranging from -0.2% to 4.2%. These results—the best in more than one year—lifted the value of plan assets from $5.213 trillion at the end of April to $5.327 trillion as of May 31. Meanwhile, the deficit between plan assets and liabilities shrank from $1.340 trillion as of April 30 to $1.242 trillion at the end of May, boosting the plans' funded ratio from 79.6% at the end of April to 81.1% as of May 31. "Although markets have lately experienced significant volatility, the PPFI funded ratio has remained consistently around the 80% mark for the past 12 months," said Becky Sielman, co-author of the Milliman PPFI. "Still, May's robust returns drove improvements in individual plans' funding levels, with five plans lifted above the 90% funding mark—for a total of 30 plans now in this healthy range—and one plan rising above the 60% funding mark, leaving only 11 of the 100 PPFI plans below this critical benchmark." Read this month's complete Public Pension Funding Index or Milliman's full range of annual Pension Funding Studies. To receive regular updates of Milliman's pension funding analysis, contact us at pensionfunding@ About Milliman Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at View source version on Contacts Becky SielmanMilliman, +1 860 687 Sign in to access your portfolio
Business Wire
20-06-2025
- Business
- Business Wire
Milliman analysis: Public pension funding surges in May after pause in tariffs drives 2.4% monthly investment gain
SEATTLE--(BUSINESS WIRE)-- Milliman, Inc., a premier global consulting and actuarial firm, today released the latest results of its Public Pension Funding Index (PPFI), which analyzes data from the nation's 100 largest public defined benefit plans. 'Although markets have lately experienced significant volatility, the PPFI funded ratio has remained consistently around the 80% mark for the past 12 months,' said Becky Sielman. May's pause in trade policy changes and proposed tariffs caused markets to surge, resulting in a $98 billion increase in the PPFI funded status. In aggregate, the plans saw estimated investment returns of 2.4% for the month, with individual plans' estimated returns ranging from -0.2% to 4.2%. These results—the best in more than one year—lifted the value of plan assets from $5.213 trillion at the end of April to $5.327 trillion as of May 31. Meanwhile, the deficit between plan assets and liabilities shrank from $1.340 trillion as of April 30 to $1.242 trillion at the end of May, boosting the plans' funded ratio from 79.6% at the end of April to 81.1% as of May 31. 'Although markets have lately experienced significant volatility, the PPFI funded ratio has remained consistently around the 80% mark for the past 12 months,' said Becky Sielman, co-author of the Milliman PPFI. 'Still, May's robust returns drove improvements in individual plans' funding levels, with five plans lifted above the 90% funding mark—for a total of 30 plans now in this healthy range—and one plan rising above the 60% funding mark, leaving only 11 of the 100 PPFI plans below this critical benchmark.' Public Pension Funding Index or Milliman's full range of annual Pension Funding Studies. To receive regular updates of Milliman's pension funding analysis, contact us at pensionfunding@ About Milliman Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at
Business Wire
19-06-2025
- Business
- Business Wire
Milliman analysis: Competitive pension risk transfer cost decreases to 100.8% during May
SEATTLE--(BUSINESS WIRE)-- Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). During May, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process dropped from 101.1% to 100.8% of a plan's accounting liabilities (accumulated benefit obligation, or ABO). That means the estimated retiree PRT cost is now 100.8% of a plan's ABO. The competitive bidding process is estimated to save plan sponsors about 3.6% of PRT costs as of May 31, 2025. Share During the same time period, the average annuity purchase cost across all insurers in our index increased from 104.1% to 104.4%. The competitive bidding process is estimated to save plan sponsors about 3.6% of PRT costs as of May 31, 2025. 'First quarter PRT results were published by LIMRA earlier this month, and the $7.1 billion in new premium sales was significantly lower than last year's Q1 results of $14.6 billion,' said Jake Pringle, Milliman principal and co-author of the MPBI. 'With the MPBI under 101% and increased insurer capacity so far in 2025, this may be a good time for plan sponsors considering a buyout to take advantage of competitive PRT pricing.' The MPBI compares the FTSE Above Median AA Curve to the annuity purchase composite interest rates from nine insurers to estimate the competitive and average costs of a PRT annuity de-risking strategy. Individual plan annuity buyouts can vary based on plan size, complexity, and competitive landscape. View the complete Milliman Pension Buyout Index. To receive regular updates with Milliman's pension buyout analysis, contact us at pensionbuyout@ About Milliman Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at
