Significant deal in the US for Prudential;
Prudential Financial, Inc. (PFI) (NYSE: PRU) closed a pension risk transfer transaction with Shell USA, Inc. for $4.9 billion in pension obligations covering a block of about 21,500 of the company’s U.S. retirees. As a result of this transaction, PFI, through its subsidiary The Prudential Insurance Company of America, will be responsible for the pension benefit payments to these retirees beginning May 15, 2024.
“Prudential is honored to help continue meeting the retirement security needs of Shell’s retirees,” said Alexandra Hyten, head of Institutional Retirement Strategies at Prudential. “We are confident that our commitment to flawless execution — from the transaction itself to participant onboarding and service delivery — will serve Shell retirees well, protecting the lifetime income they’ve worked hard to earn.”
With this transaction, Prudential has now completed seven of the 10 largest U.S. pension risk transfers on record, combining strong pension and actuarial expertise with leading investment capabilities and deep financial resources to structure custom transactions that meet clients’ goals and expand access to retirement security.
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.
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