Athene closes $800m pension risk transfer deal with aerospace company Lockheed Martin

Bermuda-based Athene Holding, which through its subsidiary Athene Life Re provides annuity reinsurance, has closed an $800 million pension risk transfer deal with Lockheed Martin, a security and aerospace company.

The buy-in transaction will hedge the financial risk associated with approximately 9,000 retirees covered under one of Lockheed Martin’s pension plans.

Through the deal, Athene’s Iowa-domiciled life insurance subsidiary, Athene Annuity and Life Company, has committed to issuing a group annuity contract covering the aggregate obligations under the plan, while Lockheed Martin will maintain responsibility for overall plan administration.

“We are pleased to have been selected as a trusted partner by Lockheed Martin to help reduce the company’s pension risk through this transaction,” said Bill Wheeler, president of Athene. “As structured, this type of transaction offers plan sponsors a strategic solution – the ability to de-risk now, while providing the flexibility to convert to a buy-out structure later – all while helping to mitigate risk against potential future market conditions.”