Alcoa reduces the risk of certain US pension plans through additional annuity contracts

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PITTSBURGH, December 14, 2021– (BUSINESS WIRE) – Alcoa Corporation (NYSE: AA) today announced the purchase of additional group annuity contracts that further enhance the company’s strong balance sheet, reduce the risk of volatility in retirement plans, and secure the company’s obligations to retirees and beneficiaries.

The additional annuity contracts with two subsidiaries of Athene Holding, Ltd. (NYSE: ATH) will facilitate the transfer of approximately $ 500 million in defined benefit pension obligations and related assets for certain United States retirees and beneficiaries.

The transfer complements a previous retirement plan announced last month for certain U.S. retirement plans. This move, which has now been completed, included pension obligations and related assets of approximately $ 1 billion.

As a result of the measures announced today, Athene will take on commitments for approximately 2,600 attendees later this month. There are no changes in benefits for those insured in the pension plans.

Athene, through its subsidiaries, is a leading retirement services company with total assets of $ 224.4 billion as of September 30, 2021. With offices in the United States, Bermuda and Canada, Athene specializes in helping clients achieve financial security , and is a solution provider to institutions. The major subsidiaries of the Athene Insurance Company have an “A” rating from AM Best and Fitch Ratings and an “A +” rating from Standard and Poor’s Global Ratings.

Alcoa expects to record a non-cash settlement fee of approximately $ 285 million (before and after taxes) in the fourth quarter of 2021 related to the December promotion. Combined with the previous annuity purchase announced in November, the total cost for the fourth quarter of 2021 is approximately $ 850 million (before and after taxes), or $ 4.48 per share.

The Company’s remaining US defined benefit pension plans are expected to receive more than 95 percent funding upon completion of the transfer.

About Alcoa Corporation

Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and aluminum products, built on strong values ​​and operational excellence that dates back 135 years since the world-changing discovery that made aluminum an affordable and vital part of modern life . Since the development of the aluminum industry and throughout our history, our talented Alcoans have introduced breakthrough innovations and best practices that have resulted in efficiency, safety, sustainability and stronger communities wherever we operate.

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