Prudential Financial, Inc. (NYSE: PRU) and Reinsurance Group of
America, Incorporated (NYSE: RGA) have been selected in a pension
risk transfer involving Verizon Communications Inc. The transaction
will settle approximately $5.9 billion of Verizon pension
liabilities and will provide retirement security for a population
that includes 56,000 Verizon retirees and their beneficiaries who
commenced their benefits before Jan. 1, 2023.
Prudential and RGA will each irrevocably guarantee and assume
50% of the benefit obligation to the retirees, except in certain
jurisdictions where Prudential will irrevocably guarantee and
assume 100% of the benefit obligation. Prudential and RGA,
organizations with a long history of providing lifetime income to
individuals, are well positioned to meet this commitment.
The transaction marks the second major pension risk transfer
agreement between Prudential and Verizon. In 2012, Prudential
completed an approximately $7.5 billion transfer that covered
approximately 41,000 of Verizon’s retirees.
“Prudential is once again proud to help secure the pension
benefits of Verizon’s retirees, along with RGA for this
transaction, with whom we have a long-standing relationship,” said
Alexandra Hyten, head of Institutional Retirement Strategies.
“That, along with Prudential’s deep experience and leadership in
managing and administering retirement benefits, will provide
Verizon’s retirees a seamless transition with the superior service
they expect and deserve.”
Under the terms of the agreement, The Prudential Insurance
Company of America, a subsidiary of Prudential Financial, will
assume complete responsibility for administrative services. This
includes providing protected retirement income payments to this
transaction’s population of retirees and their beneficiaries on
behalf of Prudential and, where applicable, on behalf of RGA,
beginning July 1, 2024.
“We are proud to work with Prudential to help secure pension
payments for Verizon retirees,” said David Lipovics, senior vice
president, head of institutional markets, RGA. “This transaction
ensures the financial protection of retirees and their families. As
the second jumbo transaction in 2024, it also underscores continued
momentum in the U.S. pension risk transfer market.”
With this transaction, Prudential has completed four of the six
largest U.S. pension risk transfers on record. Since 1928,
Prudential has been an innovator in the pension risk transfer
market, creating bespoke solutions for companies and organizations
across a wide range of industries to help them de-risk and meet
their financial objectives.
Prudential revolutionized the modern pension risk transfer
market with its pioneering pension buyouts with General Motors and
its first transaction with Verizon in 2012. Many similar
transactions followed, including HP Inc. in 2021, IBM in 2022 and,
most recently, Shell USA in 2024.
Included Verizon retirees will receive individualized
information packages with further details about the transfer,
including frequently asked questions. After receiving the package,
individuals can contact the Verizon Benefits Center using a special
dedicated line at 855-885-3061.
ABOUT PRUDENTIAL
Prudential Financial, Inc. (NYSE: PRU), a global financial
services leader and premier active global investment manager with
approximately $1.4 trillion in assets under management as of Dec.
31, 2023, has operations in the United States, Asia, Europe, and
Latin America. Prudential’s diverse and talented employees help
make lives better and create financial opportunity for more people
by expanding access to investing, insurance, and retirement
security. Prudential’s iconic Rock symbol has stood for strength,
stability, expertise and innovation for nearly 150 years. For more
information please visit news.prudential.com.
With nearly 100 years of retirement experience, the Retirement
Strategies team at Prudential delivers industry-leading solutions
for growth and protection to more than 2 million individual and
institutional customers. The business expands access to retirement
security through its Individual Retirement protected accumulation
and income strategies and its Institutional Retirement lines of
business spanning U.S. Pension Risk Transfer, International
Reinsurance, Stable Value, and Structured Settlements.
© 2024 Prudential Financial, Inc. and its related entities.
Prudential, Prudential Retirement Strategies, the Prudential logo,
the Rock symbol and Rock Solid are service marks of PFI and its
related entities, registered in many jurisdictions worldwide.
Insurance products are issued by The Prudential Insurance
Company of America (PICA), Newark, NJ. PICA is a Prudential
Financial company. PICA is solely responsible for its financial
condition and contractual obligations.
ABOUT RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a
global industry leader specializing in life and health reinsurance
and financial solutions that help clients effectively manage risk
and optimize capital. Founded in 1973, RGA is today one of the
world’s largest and most respected reinsurers and remains guided by
a powerful purpose: to make financial protection accessible to all.
As a global capabilities and solutions leader, RGA empowers
partners through bold innovation, relentless execution, and
dedicated client focus — all directed toward creating sustainable
long-term value. RGA has approximately $3.7 trillion of life
reinsurance in force and assets of $97.6 billion as of Dec. 31,
2023. To learn more about RGA and its businesses, please visit
rgare.com or follow RGA on LinkedIn and Facebook. Investors can
learn more at investor.rgare.com.
Insurance products are issued by RGA Reinsurance Company (RGA
Re), a subsidiary of Reinsurance Group of America, Incorporated.
RGA Re is solely responsible for its financial condition and
contractual obligations. RGA Re is not licensed in Connecticut,
Maine, New Hampshire, New York, or any U.S. Territory.
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version on businesswire.com: https://www.businesswire.com/news/home/20240306529427/en/
MEDIA CONTACTS PRUDENTIAL Kristen Doyle
+1 201-835-4872 kristen.doyle@prudential.com
RGA Lizzie Curry +1 636-893-8443
lizzie.curry@rgare.com
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