Shell USA Inc., Houston, purchased a group annuity contract from Prudential Insurance Co. of America to transfer about $4.9 billion in pension plan liabilities.
The transaction will transfer the responsibility of paying benefits to about 21,500 retirees to the Prudential Financial subsidiary effective May 15, according to a Feb. 7 news release from Prudential.
Shell USA is the U.S. subsidiary of U.K.-based Shell PLC. Spokespeople for the oil company could not be immediately reached for further information.
The transaction is the first "jumbo" pension risk transfer transaction in the U.S. in 2024.