First jumbo transaction of 2024 underscores continued momentum in U.S. pension risk transfer market

Prudential Financial, Inc. (PFI) (NYSE: PRU) closed a pension risk transfer transaction with Shell USA, Inc. for $4.9 billion in pension obligations covering a block of about 21,500 of the company’s U.S. retirees.

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Alexandra Hyten, Head of Institutional Retirement Strategies, Prudential (Photo: Business Wire)

As a result of this transaction, PFI, through its subsidiary The Prudential Insurance Company of America, will be responsible for the pension benefit payments to these retirees beginning May 15, 2024.

“Prudential is honored to help continue meeting the retirement security needs of Shell’s retirees,” said Alexandra Hyten, head of Institutional Retirement Strategies at Prudential. “We are confident that our commitment to flawless execution — from the transaction itself to participant onboarding and service delivery — will serve Shell retirees well, protecting the lifetime income they’ve worked hard to earn.”

With this transaction, Prudential has now completed seven of the 10 largest U.S. pension risk transfers on record, combining strong pension and actuarial expertise with leading investment capabilities and deep financial resources to structure custom transactions that meet clients’ goals and expand access to retirement security.

Since 1928, Prudential has been an innovator in the pension risk transfer market, creating bespoke solutions for companies and organizations across a wide range of industries to help them de-risk and meet their financial objectives.

Prudential revolutionized the modern pension risk transfer market with its pioneering pension buyouts with General Motors and Verizon in 2012. Many similar transactions followed, including HP Inc. in 2021 and IBM in 2022.

ABOUT PRUDENTIAL

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of Dec. 31, 2023, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for nearly 150 years. For more information, please visit news.prudential.com.

With nearly 100 years of retirement experience, the Retirement Strategies team at Prudential delivers industry-leading solutions for growth and protection to more than 2 million individual and institutional customers. The business expands access to retirement security through its Individual Retirement protected accumulation and income strategies and its Institutional Retirement lines of business spanning U.S. Pension Risk Transfer, International Reinsurance, Stable Value, and Structured Settlements.

© 2024 Prudential Financial, Inc. and its related entities. Prudential, Prudential Retirement Strategies, the Prudential logo, the Rock symbol and Rock Solid are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

Insurance products are issued by The Prudential Insurance Company of America (PICA), Newark, NJ. PICA is a Prudential Financial company. PICA is solely responsible for its financial condition and contractual obligations.

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