MetLife Selected for $16B PRT Deal

MetLife and Prudential to Assume $16B in Pension Obligations for Approximately 100,000 IBM Retirement Plan Participants and Beneficiaries

September 13, 2022

MetLife has been selected to participate in a $16B pension risk transfer transaction with International Business Machines Corporation (IBM), making it the second largest pension risk transfer ever in the U.S. market. Under the terms of the agreement, Metropolitan Life Insurance Company (MLIC), a subsidiary of MetLife, Inc. (NYSE: MET) and The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (NYSE: PRU), each will insure 50% of the pension benefit payments for each of the approximately 100,000 IBM plan participants and beneficiaries included in the transaction.

More than one hundred years since MetLife paved the way for the pension risk transfer (PRT) market by developing a group annuity contract to fund a defined benefit plan, the company continues to be a leader in this industry and has now been selected for the two largest PRT deals in almost a decade.  

“MetLife is proud to be entrusted to provide retirement income to IBM’s retirees. This transaction is firmly in line with our Next Horizon strategy as we continue to serve the needs of the largest pension plan sponsors in the United States,” said Melissa Moore, head of Annuities for MetLife. “Today, MetLife manages annual benefit payments of more than $3.8 billion for over 780,000 pension annuitants. Our focus is to deliver a seamless experience for these annuitants while finding new ways to help our customers provide security for their retirees and beneficiaries.”

Prudential will act as the lead administrator in providing protected retirement income payments to this full subset of retirees and their beneficiaries included in the transaction beginning Jan. 1, 2023. MLIC will settle the liabilities under its group annuity contract directly with Prudential.

“The deal structure combined with MetLife’s financial strength and decades of proven investments expertise enables MetLife to help IBM retirees gain long-term security and confidence,” said Moore.

This transaction will not change the amount of monthly pension benefits received by IBM impacted pension plan participants and participants will continue to receive a single payment each month.

MetLife, Inc. through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.

Forward Looking Statements

The forward-looking statements in this communication, using words such as “continues” and “will,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife's future results could differ, and it does not undertake any obligation to publicly correct or update any of these statements.