Athene Holding has secured its fourth pension risk transfer deal in 2017, after its subsidiary Athene Annuity and Life Company (AAIA) agreed to a pension buyout with Molson Coors Brewing Company and its subsidiary MillerCoors.
Under this deal, MillerCoors is transferring over $900 million in pension obligations to Athene; AAIA will assume direct payment responsibility for all liabilities covered in the pension puyout.
In the buyout arrangement, AAIA agrees to provide annuity benefits to more than 6,000 retirees and beneficiaries who will receive the same monthly benefit they were previously receiving from the MillerCoors LLC Pension Plan.
William Wheeler, president of Athene Holding, said; “we are proud MillerCoors has entrusted Athene to provide retirement security to more than 6,000 of the company’s retirees and beneficiaries.
“As a disciplined financial institution with expertise in retirement savings, Athene has established itself as a trusted pension buyout counterparty.
“This transaction enables MillerCoors to reduce the size and cost of its plan, while maintaining excellent benefit security for its retirees and beneficiaries.”
Starting May 1, 2018, Athene will begin making benefit payments to the affected individuals as well as provide ongoing administrative services.
AAIA will issue a group annuity contract to MillerCoors and individual annuity certificates to applicable retirees and beneficiaries.
Athene said it’s now written over $2.25 billion of business in this channel serving over 46,000 retirees and beneficiaries.