Prudential and MetLife complete $16bn IBM PRT deal

Written by Adam Cadle

15/09/2022

Prudential has been selected alongside MetLife to participate in a $16bn pension risk transfer (PRT) transaction with International Business Machines Corporation (IBM), the second-largest PRT ever in the US market.

Under the terms of the agreement, The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (NYSE: PRU), and Metropolitan Life Insurance Company (MLIC), a subsidiary of MetLife, Inc. (NYSE: MET), will each insure 50% of the pension benefit payments for each of the approximately 100,000 IBM plan participants and beneficiaries included in the transaction.

Prudential will act as the lead administrator in providing protected retirement income payments to this full population of retirees and their beneficiaries included in the transaction beginning 1 January 2023. MLIC will settle the liabilities under its group annuity contract directly with Prudential.

“Prudential is proud to be selected to help secure the pension benefits for this group of retirees and their beneficiaries,” Scott Gaul, head of institutional retirement strategies at Prudential, said.

“IBM is entrusting the fulfillment of these pension promises to an insurer with deep experience and leadership in managing and administering retirement benefits. Prudential is committed to providing plan participants a seamless transition with the superior service they expect and deserve. This deal is another great example of our strategy in action, as we work to expand access to retirement security, drive business growth and deliver industry-leading customer and client experiences.”

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