This agreement marks the fourth U.S. retiree buyout since the
beginning of 2021 and reflects a continuation of efforts to reduce
pension liabilities, volatility and cost while securing retiree
pension benefits with highly-rated insurance companies
BLUE
BELL, Pa., Nov. 27, 2023 /PRNewswire/ -- Unisys
(NYSE: UIS) today announced it has closed agreements with F&G
Annuities & Life, Inc. (NYSE: FG) ("F&G") to purchase group
annuity contracts totaling approximately $250 million 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 $244 million. Since the purchase will be made by
the pension trust, there will be no impact on the company's cash
position.
"Purchasing these annuity contracts demonstrates the company's
continued commitment to de-risking its pension obligations.," said
Unisys Chief Financial Officer Deb
McCann.
About Unisys
Unisys is a global technology solutions
company that powers breakthroughs for the world's leading
organizations. Our solutions – digital workplace; cloud,
applications & infrastructure; enterprise computing; and
business process – help our clients challenge the status quo and
create new possibilities. To learn how we deliver breakthroughs for
our clients – and have been pushing the possible for 150 years –
visit unisys.com and follow us on LinkedIn.
#Unisys150.
About F&G
F&G Annuities & Life, Inc. is
committed to helping Americans turn their aspirations into reality.
F&G is a leading provider of insurance solutions serving retail
annuity and life customers and institutional clients and is
headquartered in Des Moines,
Iowa.
Forward-Looking Statements
Any statements contained in
this release that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995. Unisys cautions readers that the assumptions forming the
basis for forward-looking statements include many factors that are
beyond Unisys' ability to control or estimate precisely and are
made based upon management's current expectations, assumptions and
beliefs as of this date concerning future developments and their
potential effect upon Unisys. There can be no assurance that future
developments will be in accordance with management's expectations,
assumptions and beliefs or that the effect of future developments
on Unisys will be those anticipated by management. Forward-looking
statements in this release include the impact on the U.S. pension.
Additional information and factors that could cause actual results
to differ materially from Unisys' expectations are contained in
Unisys' filings with the U.S. Securities and Exchange Commission
(SEC), including Unisys' Annual Reports on Form 10-K and subsequent
Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K,
and other SEC filings, which are available at the SEC's web site,
http://www.sec.gov. Information included in this release is
representative as of the date of this release only and while Unisys
periodically reassesses material trends and uncertainties affecting
Unisys' results of operations and financial condition in connection
with its preparation of management's discussion and analysis of
results of operations and financial condition contained in its
Quarterly and Annual Reports filed with the SEC, Unisys does not,
by including this statement, assume any obligation to review or
revise any particular forward-looking statement referenced herein
in light of future events.
RELEASE NO.: [1127/9931]
Unisys and other Unisys products and services mentioned herein,
as well as their respective logos, are trademarks or registered
trademarks of Unisys Corporation. Any other brand or product
referenced herein is acknowledged to be a trademark or registered
trademark of its respective holder.
UIS-C
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SOURCE Unisys Corporation
