Prudential Financial, Inc., a global provider of financial services, closed a pension risk transfer transaction with Shell USA, Inc., assuming $4.9 billion in pension obligations for 21,500 of the company’s US 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.
This is Shell’s first jumbo transaction of 2024, and it is the seventh largest one out of ten pension risk transfers on record.
Prudential’s most recent transaction, the company noted, underscores continued momentum in the US pension risk transfer market.
“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.
Adding: “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.”
