Unisys buys group annuity contracts from F&G Annuities totaling $250M

Unisys (UIS) announced it has closed agreements with F&G Annuities & Life, Inc. (FG) to purchase group annuity contracts totaling approximately $250M through which Unisys will transfer projected benefit obligations valued at a similar amount related to certain retirees under one of the company’s U.S. pension plans to F&G. 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 3,900 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. Unisys anticipates this action will result in a one-time, non-cash, pre-tax settlement charge of approximately $244M. Since the purchase will be made by the pension trust, there will be no impact on the company’s cash position.