LGRA and RGA complete $700mn pension risk transfer with FirstEnergy

Legal & General Retirement America (LGRA) and Reinsurance Group of America (RGA) have partnered to complete a $700 million pension risk transfer (PRT) transaction with US-based FirstEnergy.

The transaction will secure the retirement benefits of approximately 2,000 retirees from the investor-owned electric utilities company.

LGRA is lead administrator and will be fully responsible for the service and administration of all participants transferred as part of the transaction, while Aon and K&L Gates advised FirstEnergy on this transaction.

George Palms, President of LGRA, commented: “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.

“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.

Adding: “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.”

April Marx, Director of Total Rewards for FirstEnergy, said: “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.”

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