Market Overview

Prudential and Raytheon reach agreement on $923 million pension risk transfer


Pension Risk Transfer Agreement Covers Pension Obligations for
13,000 Retirees

Raytheon (NYSE:
) will reduce its pension obligations by $923 million by
purchasing a group annuity contract from The Prudential Insurance
Company of America, a subsidiary of Prudential Financial, Inc. (NYSE:
). The agreement transfers the responsibility for paying certain
pension benefits to approximately 13,000 U.S. retirees, as well as their
beneficiaries, from Raytheon's previously discontinued operations.

The decision to transfer a portion of Raytheon's pension obligations to
Prudential highlights a growing trend among U.S. companies. Corporations
that offer defined benefit pension plans are increasingly looking to
move some of their obligations due to the increasing risks and costs of
maintaining large plans.

Peggy McDonald, the senior vice president who led negotiations for
Prudential, said, "Prudential is proud to have been chosen to provide
retirement security for this group of Raytheon's retirees and their
beneficiaries. We are committed to providing them with a seamless

As a result of the transfer, Prudential will be responsible for making
continuing payments to the affected retirees and their beneficiaries, in
accordance with the group annuity contract.

Scott Kaplan, Prudential's head of Pension Risk Transfer, said,
"Prudential is a unique player in the pension risk transfer market, a
market that it helped create. Our pension and actuarial expertise, along
with our investment capabilities and deep financial resources, help our
clients reduce pension risks while allowing them to focus on their core

Since 1923, Prudential has offered pension solutions to companies and
organizations. In 2017, Prudential made more than $11 billion in pension
payments to more than 1.3 million retirees and their beneficiaries.
Prudential is the global leader in pension risk transfer solutions.

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE:
), a financial services leader with more than $1 trillion in
assets under management as of March 31, 2018, has operations in the
United States, Asia, Europe, and Latin America. Prudential's diverse and
talented employees are committed to helping individual and institutional
customers grow and protect their wealth through a variety of products
and services, including life insurance, annuities, retirement-related
services, mutual funds and investment management. For more information,
please visit

Prudential Retirement delivers retirement plan solutions for public,
private, and nonprofit organizations. Services include defined
contribution, defined benefit and non-qualified deferred compensation
recordkeeping, administrative services, investment management,
comprehensive employee education and communications, and trustee
services, as well as a variety of products and strategies, including
institutional investment and income products, pension risk transfer
solutions and structured settlement services. With more than 85 years of
retirement experience, Prudential Retirement helps meet the needs of 4.3
million participants and annuitants. Prudential Retirement has $427.6
billion in retirement account values as of March 31, 2018. Retirement
products and services are provided by The Prudential Insurance Company
of America (PICA), Newark, N.J., or its affiliates.


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