Athene unveils $1.7bn pension buyout agreement with GE

Bermuda-based Athene Holding, a retirement services company, has agreed a significant pension buyout agreement with GE, which it claims will help the world work more efficiently, reliably, and safely.

Under the terms of the transaction, Athene's wholly-owned Iowa-domiciled life insurance subsidiary, Athene Annuity and Life Company and Athene's wholly-owned New York-domiciled life insurance subsidiary, Athene Annuity & Life Assurance Company of New York, have agreed to provide annuity benefits for approximately 70,000 retirees who are currently receiving benefits from GE's pension plan. In aggregate, GE is transferring approximately $1.7 billion in pension obligations to Athene.

"We are pleased to serve as a trusted partner to GE in helping reduce the company's pension risk through this transaction," said Kim Rosenberg, SVP head of pension risk transfer at Athene. "Athene deeply values the relationships it has with its customers and has a strong commitment to service excellence. Retirees covered by this transaction can be confident they receive the same pension benefit, on the same schedule, as what they currently receive."

Under the agreement, the Athene companies will each issue a group annuity contract to GE and individual annuity certificates to applicable retirees. They will have direct payment responsibility for all the liabilities covered in this transaction.

"As a leader in pension risk transfers, Athene is able to provide plan sponsors with customized solutions to achieve their desired pension risk and financial objectives while ensuring the financial security of their plan participants," said Bill Wheeler, president of Athene. "Our differentiated investment, actuarial, risk-management, and operational capabilities, combined with our strong balance sheet, position us well to serve the multi-trillion dollar defined benefit marketplace."