2020 Pension De-Risking Transfers with Undisclosed Insurance Co.’s

Not all companies who offload their pension liabilities to insurance companies disclose the name of the company taking on the pension liabilities. Below is a recap of some 2020 transfers, as reported by S&P Global Market Intelligence. Teradyne Inc. – $24.4 Million Lockheed Martin – $793 Million Kellogg Co. – $470 million Newell Brands Inc. […]

GE Transfers $1.7 Billion to Athene

In late 2020, GE transferred $1.7 Billion in pension liabilities to Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York. This transaction affects approximately 70,000 retirees who have been receiving benefits from GE’s pension plan. Bermuda based Athene Holding has purchased more than $18.5 Billion in pension liabilities affecting over […]

Athene Takes over Pension Liabilities from JC Penney

JCPenney, the ailing retailer, declared bankruptcy in May 2020 and sold off its retail operations before emerging from Chapter 11 at the end of 2020.  In early April, Athene Holding took over $2.8 Billion of JC Penney’s pension obligations, completing the termination of JCPenney’s pension plan. Two of Athene’s wholly owned subsidiaries, Athene Annuity and […]

Pension Risk Transfer – 2020 Facts

Facts from 2020 First Quarter 2020: • “Buy-out” purchases $4.462 Billion Second Quarter 2020: • “Buy-out” purchases were $2.270 Billion Third Quarter 2020: • “Buy-out” purchases were $4.599 Billion Fourth Quarter 2020: • “Buy-out” purchases were $13.680 Billion Total “Buy-out” contracts for 2020: 432 Total of “Buy-out” purchases: $25 Billion Total Number of Retirees Affected: […]

Weyerhauser Transfers Affects 5,200 Retirees

Weyerhaeuser transferred $765 million of its pension liabilities in December, 2020 through the purchase of a group annuity contract from Metropolitan Tower Life Insurance Company, a subsidiary of MetLife. This pension de-risking transaction affects 5,200 Weyerhaeuser retirees.  

Kemper Corporation Transfers Pension Liabilities

The Kemper Corporation, an insurance holding company based in Chicago, Illinois has transferred $205 million in pension liabilities to Banner Life Insurance Company. Kemper closed its pension plan to new hires on January 1, 2006, and benefit accruals have been frozen since June 30, 2016. Before entering into the pension de-risking transfer with Banner Life, […]

AIG Will Pay $12 Million Fine to New York

On February 1, 2021 American International Group, Inc. agreed to pay a $12 Million fine to the State of New York to settle charges by the New York State Department of Financial Services (NYDFS) that it conducted life insurance business in New York without a license. Between 2014 and 2019, AIG entered into four pension […]

Pension Risk Transfer – Facts from 2019

Pension risk transfer facts for 2019 First Quarter 2019: 78 “Buy-out” group annuity contracts purchased by Plan Sponsors “Buy-out” purchases surpassed $4.7 Billion Second Quarter 2019: 112 “Buy-out” group annuity contracts purchased by Plan Sponsors “Buy-out” purchases were $4.166 Billion “Buy-in” purchases were $880 Million. This represented the 5th consecutive quarter with the sale of […]

Annuity “Buy-In” or “Buy-Out”

What is the difference between a pension risk transfer via an annuity “buy-in” or “buy-out?” With an annuity “buy-in” a plan sponsor purchases one or more group annuity contracts to cover pension obligations with the plan sponsor remaining responsible for making payment to the plan participants. With an annuity “buy-out” the defined benefit plan sponsor […]

LIMRA Reports 8 Out of 10 Defined Benefit Plan Sponsors Want to De-Risk

According to a press release from LIMRA Secure Retirement Institute, eight out of ten defined benefit plan sponsors are “at least somewhat interested” in pension de-risking via the purchase of a group annuity contract.  LIMRA (formerly the Life Insurance Market Research Association) reports that “favorable economic conditions and growing awareness and interest in de-risking pension liabilities […]