Legal & General Retirement America (LGRA) & Reinsurance Group of America (RGA) have entered into a $309 million pension risk transfer (PRT) transaction with PPG.
PPG is a Pittsburgh-based Fortune 500 global leader in manufacturing paints, coatings and specialty materials.
The lift-out covers over 4,000 retirees and beneficiaries with benefits under a defined benefit pension plan sponsored by PPG.
At the same time, LGRA is the lead administrator and will be fully responsible for the service and administration of all participants transferred as part of the lift-out.
RGA has been a long-term reinsurance partner of the Legal & General Group, and the companies are expanding their decades-long partnership to support the US PRT market with strategic solutions for plan sponsors seeking to de-risk their pension plans.
George Palms, President, LGRA, said: “We are proud to work together with RGA to protect the retirement income of over 4,000 of PPG’s retirees and beneficiaries. LGRA is committed to providing exceptional customer service and ensuring a smooth transition for both PPG and the participants. This transaction comes at the close of another historic quarter in the PRT market, highlighting the growing role PRT is playing in the U.S. market.”
David Lipovics, Vice President, U.S. Pension Risk Solutions, RGA, commented: “RGA has a 50-year history in the U.S. reinsurance industry and has supported PRT transactions globally for more than 15 years. We are delighted to be bringing our exceptional financial strength and global expertise directly to U.S. pension plans.”
In their Q123 results, RGA reported a net income available to RGA shareholders of $252 million, a substantial improvement compared to $197 million from the prior-year quarter.