From NASDAQ:

Prudential Financial Inc. and Reinsurance Group of America, Inc. have secured a $5.9 billion pension risk transfer transaction from Verizon Communications Inc., covering 56,000 retirees. This marks Prudential’s 11th transaction in 2023 and an optimistic outlook for 2024. The growing trend of pension risk transfers is fueled by favorable funding positions due to high interest rates.

Under the partnership, RGA and PRU will guarantee 50% of total benefit obligations, with PRU potentially assuming full responsibility in some cases. The arrangement is the second-largest PRT between Verizon and Prudential, following a $7.5 billion deal in 2012. Prudential’s subsidiary will handle administrative services, starting July 1, 2024. This deal marks Prudential’s completion of four of the six largest U.S. pension risk transfers.

Prudential’s stock has seen a 14.2% increase in the past year, outperforming the industry’s growth of 8.3%. Investors may consider other strong finance sector stocks like Cboe Global Markets and Coinbase Global with positive earnings outlooks and Zacks Ranks of #2 and #1, respectively. Coinbase has been exceeding earnings estimates consistently and is positioned for significant growth.

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Overall, Prudential’s involvement in the Verizon pension risk transfer deal signifies ongoing success in the market. Investors seeking growth opportunities may also consider finance sector stocks like Cboe Global Markets and Coinbase Global, which have strong earnings prospects. For those interested in oil investments, Zacks offers insights into promising oil stocks poised for significant gains.



Read more at NASDAQ: Prudential (PRU) to Insure Verizon’s Pension Liabilities