Unisys Transfers a Portion of its U.S. Defined Benefit Pension Obligations to F&G Through a nearly $265 Million Annuity Contract
This agreement marks the third U.S. retiree buyout since 2021 and reflects continuation of efforts to reduce pension liabilities, volatility and cost while securing retiree pension benefits with highly-rated insurance companies
BLUE BELL, Pa., March 23, 2023 – Unisys Corporation (NYSE: UIS) today announced it has closed agreements with F&G Annuities & Life, Inc. (NYSE: FG) (“F&G”) to purchase group annuity contracts totaling approximately $265 million through which Unisys will transfer projected benefit obligations valued slightly less than this amount related to certain retirees under one of the company’s U.S. pension plans to F&G.
Unisys anticipates that this action will result in a one-time, non-cash, pre-tax settlement charge of approximately $193 million. Because the purchase will be made by the pension trust, there will be no impact on the company’s cash position.
This action brings the value of U.S. defined benefit pension obligations removed from the company’s balance sheet since 2020 to over $1 billion and global pension obligations to over $1.7 billion.
“Purchasing these annuity contracts demonstrates the company’s continued commitment to de-risking its pension obligations,” said Unisys Chief Financial Officer Deb McCann.
As part of the transfer, F&G’s insurance subsidiaries, Fidelity & Guaranty Life Insurance Company and Fidelity & Guaranty Life Insurance Company of New York, will assume responsibility for pension benefits for approximately 8,650 retirees and beneficiaries with monthly benefits lower than certain thresholds. There will be no changes to the gross amount, timing, or form of the monthly pension payments.
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F&G Annuities & Life, Inc. is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa.
Any statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Additional discussion of factors that could affect Unisys future results is contained in our periodic filings with the Securities and Exchange Commission.
RELEASE NO.: 0323/9902
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