American International Group, Inc. has announced that Avery Dennison Corporation has agreed to transfer $750 million of pension obligations to American General Life Insurance Company, part of AIG’s Life & Retirement business.
The agreement covers approximately 8,500 retirees, beneficiaries, and deferred and active members.
Avery Dennison is a global materials science company that specialises in the design and manufacture of a variety of labelling and functional materials.
“We are pleased Avery Dennison selected AIG to manage the retirement security of its retirees, and we are committed to providing them with a smooth transition,” said Ali Vaseghi, Chief Operating Officer – Institutional Markets at AIG and leader of the Pension Risk Transfer business.
“AIG established its Pension Risk Transfer business over 35 years ago and serves as a trusted partner to plan sponsors as they navigate the complex plan termination process,” Vaseghi added.
AIG explained that pension risk transfer transactions represent “a solution for companies wanting to safeguard the retirement commitments made to their current and former employees, while minimizing the risks and demands connected with managing these benefits.”
It claimed that its insurance solutions provide an additional risk management tool for companies while maintaining the retirement security of their employees.
