TRW Signs Pension Buyout Agreement with MetLife
December 16 2014 - 11:41AM
Business Wire
Transfers Pension Plan Obligations for more
than 7000 retirees and beneficiaries
MetLife, Inc. (NYSE:MET) announced today that the company has
signed an agreement with TRW, a subsidiary of TRW Automotive
Holdings Corp (NYSE:TRW) for MetLife to provide pension benefits to
7,045 retirees and current beneficiaries in TRW’s defined benefit
plan in a $440 million transaction.
“MetLife is pleased to be working with TRW on this transaction,”
says Wayne Daniel, Senior Vice President, U.S. Pensions, MetLife.
“Our expertise in managing transferred pension liabilities allows
our clients to do what they do best - focus on their core business
- while feeling secure that their risks are well managed and their
retirees’ and beneficiaries’ pensions are protected. Our goal is to
create value for TRW’s shareholders by enabling TRW to reduce the
risk and volatility associated with managing their pension
plan.”
This transaction follows TRW’s announcement last month that the
company had entered into a partial buy-out agreement with Legal
& General Assurance Society related to £2.5 billion ($3.9
billion) of their U.K. pension scheme. Both transactions are part
of TRW’s overall plan to reduce its pension liabilities in the
U.K., U.S. and Canada.
For this U.S. transaction, TRW purchased a group annuity
contract from MetLife; as a result, the insurance company will take
over pension payments to the retirees and beneficiaries covered by
the agreement. The transaction maintains the amount of the monthly
pension benefit received by covered retirees and surviving
beneficiaries. MetLife, rather than TRW, is responsible for making
these monthly payments following the close of the transaction; no
action is needed by the retiree/beneficiary.
“The buy-out with TRW is one of several MetLife has closed over
the last few months,” said Daniel. “Nearly a third of plan sponsors
are considering pension risk mitigation transactions in the next
two years according to a poll MetLife recently conducted among plan
sponsors1. The number of deals we have closed this year and last
year, as well as our consistently robust new business pipeline,
suggests plans sponsors are not just considering but beginning to
take action when it comes to reducing their pension risk.”
About TRW
With 2013 sales of $17.4 billion, TRW Automotive ranks among the
world's leading automotive suppliers. Headquartered in Livonia,
Michigan, USA, the Company, through its subsidiaries, operates in
24 countries and employs approximately 65,000 people worldwide. TRW
Automotive products include integrated vehicle control and driver
assist systems, braking systems, steering systems, suspension
systems, occupant safety systems (seat belts and airbags),
electronics, engine components, fastening systems and aftermarket
replacement parts and services. All references to "TRW Automotive",
"TRW" or the "Company" in this press release refer to TRW
Automotive Holdings Corp. and its subsidiaries, unless otherwise
indicated. TRW Automotive news is available on the internet at
www.trw.com.
About MetLife
MetLife, Inc. (NYSE:MET), through its subsidiaries and
affiliates (“MetLife”), is one of the largest life insurance
companies in the world. Founded in 1868, MetLife is a global
provider of life insurance, annuities, employee benefits and asset
management. Serving approximately 100 million customers, MetLife
has operations in nearly 50 countries and holds leading market
positions in the United States, Japan, Latin America, Asia, Europe
and the Middle East. For more information, visit
www.metlife.com.
1 The Pension Risk Transfer Poll was fielded between September
23 and October 6, 2014 among defined benefit (DB) plan sponsors
from Fortune 1000TM companies, as well as the next largest 2,000
companies by DB plan asset size. There were 228 respondents.
MetLife, Inc.Judi Mahaney, 212-578-7977jmahaney@metlife.com
MetLife (NYSE:MET)
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