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.
Copyright Business Wire 2014