Content area
Full Text
U.S. companies disclosed that they transferred $12.8 billion in pension obligations to domestic life insurers in 2019, according to a review of public documents by S&P Global Market Intelligence.
Such transactions occur when a company agrees, usually by purchasing a group annuity, to shift its obligations to pay future pension benefits to an insurance company. The insurer then becomes responsible for making those future payments to current and/or former employees of the company.
A life insurance industry research group, LIMRA, reported single-premium pension buyout deals of almost $28.0 billion in 2019, about $