Centrus Energy has bought a $187m group annuity contract from an unnamed insurer that will result in the obligations of roughly 1,400 scheme beneficiaries being transferred.
The deal was struck on 12 October last year and the scheme members’ benefits were transferred across to the insurer on 1 December, according to the nuclear energy services firm’s latest 10K filing with the Securities and Exchange Commission (SEC).
According to the 9 February filing, the annuity purchase was funded with pension plan assets worth $171.4m. As a result of the transaction Centrus Energy recorded income of $28.6m in the fourth quarter of 2023.
According to the 10k filing Centrus Energy has two separate pension plans. The liabilities contained in those plans were valued at $308.2m and $527.3m respectively at the end of 2022.
Centrus Energy’s Chief Financial Officer Kevin Harrill told analysts on a 9 February earnings call that the annuity deal was equal to 41% of the liabilities in the firm’s largest pension plan and 30% of total obligations.
Harrill added that Centrus has reduced its total pension obligations by 90% since 2015.
News of the Centrus deal emerged a few days after Prudential Financial announced it had taken on $4.9bn of Shell US’s pension liabilities.
