Armstrong World Industries transfers $1bn in pension obligations to Athene

Athene Annuity and Life Company (AAIA) and Athene Annuity and Life Assurance Company of New York (AANY) will provide annuity benefits for approximately 10,000 retirees receiving benefits from Armstrong World Industries’ (AWI) pension plan.

The arrangement is part of a pension buyout agreement arranged between AAIA and AANY’s parent company, Bermuda-based Athene Holding, and AWI, which designs and manufactures commercial and residential ceiling, wall and suspension systems.

In aggregate, Armstrong is transferring approximately $1 billion in pension obligations to Athene. AAIA and AANY will each issue a group annuity contract to AWI and individual annuity certificates to applicable retirees. AAIA and AANY will have direct payment responsibility for all the liabilities covered in the transaction.

Sean Brennan, executive vice president of pension risk transfer and flow reinsurance at Athene, highlighted Athene’s differentiated investment, actuarial, risk management and operational capabilities, and its strong balance sheet. “Athene is committed to solutions that help plan sponsors meet their financial obligations while ensuring the financial security of their plan participants,” he said.

Athene is responsible for providing income security for more than 178,000 annuitants, representing approximately $12 billion of obligations globally. At the end of 2019 it had total assets of $146.9 billion.