Alcoa Purchases Group Annuity Contracts for Certain U.S. Pension Plans
August 08 2022 - 8:30AM
Business Wire
Alcoa Corporation (NYSE: AA) today announced the purchase of
group annuity contracts that will facilitate the transfer of
approximately $1 billion of pension obligations and assets
associated with defined benefit pension plans for certain United
States retirees and beneficiaries.
The transfer, which will be complete later this month, further
enhances Alcoa’s strong balance sheet, reduces the risk from
volatility in pension plan obligations, and continues to meet
commitments to retirees and beneficiaries. This is the Company’s
fifth pension annuity transaction for a total transfer of
approximately $3.3 billion in pension obligations and assets from
2018 to date.
The group annuity contracts will be executed by two subsidiaries
of Athene Holding Ltd. (Athene). Athene will assume payments for
approximately 4,400 participants in the U.S. pension plans.
Participants will not have any change in their benefits, and Athene
will take over payment obligations in November 2022.
Athene, through its subsidiaries, is a leading retirement
services company with total assets of $246.1 billion as of March
31, 2022. With operations in the United States, Bermuda and Canada,
Athene specializes in helping its customers achieve financial
security and is a solutions provider to institutions. Athene’s
principal insurance company subsidiaries have an “A+” from Fitch
Ratings and Standard and Poor’s Global Ratings, an “A” rating from
A.M. Best and an “A1” rating from Moody’s Investors Service.
In the third quarter of 2022, Alcoa expects to record a non-cash
settlement charge of approximately $635 million (pre- and
after-tax), or $3.41 per share, related to the annuity
transaction.
Alcoa expects that its U.S. defined benefit pension plans will
remain more than fully funded after the transfer is complete.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina
and aluminum products with a vision to reinvent the aluminum
industry for a sustainable future. With a values-based approach
that encompasses integrity, operating excellence, care for people
and courageous leadership, our purpose is to Turn Raw Potential
into Real Progress. Since developing the process that made aluminum
an affordable and vital part of modern life, our talented Alcoans
have developed breakthrough innovations and best practices that
have led to greater efficiency, safety, sustainability and stronger
communities wherever we operate.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company
developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls, and
webcasts.
Forward-Looking Statements
This press release contains statements that relate to future
events and expectations, and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “aim,” “ambition,” “anticipates,”
“believes,” “could,” “develop,” “endeavors,” “estimates,”
“expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,”
“plans,” “potential,” “projects,” “reach,” “seeks,” “sees,”
“should,” “targets,” “will,” “working,” “would,” or other words of
similar meaning. All statements by Alcoa Corporation that reflect
expectations, assumptions or projections about the future, other
than statements of historical fact, are forward-looking statements.
Forward-looking statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties, and
changes in circumstances that are difficult to predict. Although
Alcoa Corporation believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained, and
it is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties. Additional information concerning factors
that could cause actual results to differ materially from those
projected in the forward-looking statements is contained in Alcoa
Corporation’s filings with the Securities and Exchange Commission.
Alcoa Corporation disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable
law.
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Investor Contact James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contact Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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