IBM selects Brookfield Annuity to participate in $1.5B pension risk transfer transaction

Brookfield Annuity Company (“Brookfield Annuity”) has been selected to participate in a $1.5 billion pension risk transfer transaction with IBM Canada Ltd. (IBM Canada), the second-largest pension risk transfer ever in the Canadian market. Under the terms of the agreement, Brookfield Annuity and RBC Life Insurance Company (RBC Insurance) will insure respectively 75% and 25% of the pension benefit payments for each of the approximately 6,000 plan participants and beneficiaries included in the transaction.

RBC Insurance will act as the lead administrator in providing protected retirement income payments to this full population of retirees and their beneficiaries included in the transaction beginning May 1, 2025. Brookfield Annuity will settle the liabilities under its group annuity contract directly with RBC Insurance.

Janice Madon, President & CEO, Brookfield Annuity Company, said “The transaction demonstrates the insurance industry’s capacity to take on large liabilities, and showcases Brookfield Annuity’s ability to accommodate deal-specific requests in order to deliver value and benefit security to retirees and beneficiaries.”

About Brookfield Annuity

Brookfield Annuity Company is the only Canadian life insurance company primarily focused on providing group annuity solutions to defined benefit pension plans. The company is wholly owned by Brookfield Wealth Solutions Ltd., a leading wealth solutions provider, focused on securing the financial futures of individuals and institutions through a range of wealth protection and retirement services and tailored capital solutions.

Brookfield Annuity’s financial strength rating is A- (A.M. Best). The company has $5.5B pension assets under management and makes benefit payments to over 33,000 annuitants annually.