The transaction will secure the retirement benefits of approximately 2,000 retirees
STAMFORD, Conn.–(BUSINESS WIRE)–Legal & General Retirement America (LGRA), a division of Banner Life Insurance Company, and Reinsurance Group of America, Incorporated (NYSE:RGA) announced today they completed a pension risk transfer (PRT) transaction with FirstEnergy, one of the nation’s largest investor-owned electric utilities, for approximately $700 million.
The retiree lift-out was executed in December and covers approximately 2,000 retirees – representing about 8% of the company’s total pension liability associated with its former generation subsidiaries. LGRA is lead administrator and will be fully responsible for the service and administration of all participants transferred as part of the transaction. Aon and K&L Gates advised FirstEnergy on this transaction.
“Partnering with RGA enables us to deliver a unique risk-management solution to FirstEnergy and its annuitants that is backed by the financial strength and experience of two leading insurance companies,” said George Palms, President of LGRA. “We take great pride in our level of dedicated customer service and through this transition, we look forward to servicing and protecting the retirement income for these participants.”
“RGA is dedicated to delivering attractive risk management solutions to U.S. pension plans and to ensuring the financial protection of pensioners and their families,” said David Lipovics, Senior Vice President, Head of Institutional Markets at RGA. “This latest transaction is a natural extension of our 15-year history of support in the global pension risk transfer market and demonstrates our ability to provide trusted financial solutions in the U.S. retirement space.”
“Importantly, these pension benefits remain protected and retirees of our former subsidiaries and beneficiaries will see no changes in the value of their benefits as a result of this transition,” said April Marx, Director of Total Rewards for FirstEnergy.
About Legal & General Retirement America
Legal & General Retirement America (LGRA) specializes in customized pension risk solutions for institutional clients in the US market. Established in 2015, Legal & General Retirement America is a business unit of Legal & General America, Urbana, MD. Legal & General America life insurance and retirement products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states, the District of Columbia and Puerto Rico. William Penn products are distributed exclusively in New York; Banner Life is not authorized as an insurer in and does not do business in New York. The Legal & General America companies are part of the worldwide Legal & General Group. CN03112024-1
More information on LGRA can be found at www.lgra.com.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus – all directed toward creating sustainable long-term value. RGA has approximately $3.7 trillion of life reinsurance in force and assets of $97.6 billion as of December 31, 2023. To learn more about RGA and its businesses, please visit www.rgare.com or follow RGA on LinkedIn and Facebook. Investors can learn more at investor.rgare.com.
Insurance products are issued by RGA Reinsurance Company (RGA Re), a subsidiary of Reinsurance Group of America, Incorporated. RGA Re is solely responsible for its financial condition and contractual obligations. RGA Re is not licensed in Connecticut, Maine, New York, or any U.S. Territory.
FirstEnergy
FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation’s largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company’s transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on X, formerly known as Twitter, @FirstEnergyCorp.
Contacts
For LGRA:
Carolyn Gasbarra
Vice President, Edelman Smithfield
Carolyn.Gasbarra@edelmansmithfield.com
For RGA:
Lizzie Curry
Director Public Relations
For FirstEnergy:
Tricia Ingraham
FirstEnergy Communications
