Unisys Transfers $200M of its US Defined Benefit Pension Obligations to F&G Through the Purchase of Group Annuity Contracts
Portfolio Pulse from Benzinga Newsdesk
Unisys (NYSE:UIS) has finalized agreements with F&G Annuities & Life, Inc. to transfer $200M of its US defined benefit pension obligations through the purchase of group annuity contracts. This move, affecting around 3,800 retirees, will incur a one-time, non-cash, pre-tax settlement charge of $129M for Unisys in Q1, with no impact on its cash position.

April 01, 2024 | 11:05 am
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Unisys transfers $200M pension obligations to F&G, incurring a $129M Q1 charge, no cash impact.
The transfer of pension obligations by Unisys to F&G, while financially prudent in the long term, results in a significant one-time charge of $129M in the first quarter. This could negatively impact investor sentiment in the short term, despite no change to the company's cash position. The relevance is high as the action directly involves Unisys, and the importance is significant due to the substantial financial figures involved. Confidence in this analysis is high, given the clear financial implications outlined in the announcement.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100