The two financial firms are launching Prismic Life Reinsurance with $10 billion in reserves.
The investment giant has registered a Bermuda affiliate to focus on the booming pension risk transfer and retail annuity markets, according to a filing.
The company was penalized for violating state law by conducting an unlicensed insurance business.
The past two years have been challenging for institutional investors, but they have also brought about opportunities to address some long-term financial challenges.
Several factors will likely drive more mid-market and large plan sponsors to initiate pension risk transfer (PRT) transactions, surveys show.
Following a bench trial, said the firms “acted prudently and reasonably in administrating, investing and terminating the pension plan.”
Among the interesting points of legal discussion in the magistrate judge's report is an evaluation of the standard embraced by the U.S. Circuit Court of Appeals for the 11th Circuit for weighing witness testimony in ERISA cases.
The higher the annuity credited rate (interest rate) for a pension risk transfer (PRT), the more interest an insurer would earn and the less money it needs today in order to guarantee the monthly benefit, but the lower the interest rate, the less interest it would earn and the more money it needs today, explains Mark Unhoch, with October Three.
Looking at the hits company balance sheets take from a pension risk transfer (PRT) to terminate a defined benefit (DB) plan, may cause plan sponsors to change course.
In 2018, single premium buy-out product sales peaked at $26 billion, more than 14% higher than 2017, according to LIMRA Secure Retirement Institute’s quarterly U.S. Group Annuity Risk Transfer Survey.
Clients with defined benefit plans that are currently enjoying a bump in funded status may want to act soon to lock in those gains while market conditions remain favorable.
As part of the PRT agreement, Prudential will assume the responsibility for paying pension benefits to about 23,000 International Paper retirees.
PLANADVISER interviewed a spokesperson for a large group of Verizon retirees back in 2015, shortly following their defeat in appellate court in a case challenging the merits of pension risk transfers; we catch back up with Jack Cohen to talk shop and ask, how have things been going post annuitization?