Kemper Corp., Chicago, completed pension risk transfer transactions in the fourth quarter that cut its liabilities by nearly half.
The company purchased a group annuity contract from an insurance company during the fourth quarter to transfer about $205 million in pension plan liabilities. Kemper did not disclose the name of the insurer in its 8-K filing with the SEC Monday.
The company also made lump sum payments totaling $117 million to plan participants. The 8-K filing did not disclose the nature of the population that received the payments.
Kemper "took advantage of an attractive pension environment to reduce non-value-added risk and further strengthen an already strong balance sheet," according to a presentation included with the filing.