Unisys Completes $320 Million Pension Liability Transfer to F&G Annuities

Introduction
In a pivotal move aimed at optimizing its financial structure, Unisys Corporation (NYSE: UIS) has successfully finalized a substantial agreement with F&G Annuities & Life, Inc. This strategic initiative involves the purchase of group annuity contracts amounting to approximately $320 million, representing a significant reduction in the company's U.S. defined benefit pension obligations.

Details of the Agreement
The agreement, as revealed by Unisys on September 29, 2025, entails the transfer of projected benefit obligations equivalent to the purchase cost related to certain retirees. This decision aligns perfectly with Unisys' broader capital strategy and pension management approach. According to their recent investor presentation dated July 24, 2025, this transaction marks the initial phase in a comprehensive plan to alleviate around $600 million in U.S. qualified defined benefit pension plan liabilities by the close of 2026.

The arrangement signifies that F&G's insurance subsidiaries, namely Fidelity Guaranty Life Insurance Company and its New York counterpart, will assume the responsibilities for pension benefits, which affect approximately 3,150 retirees and beneficiaries. It is essential to note that the transition will not alter the gross amounts or the schedule of monthly payments, ensuring that beneficiaries will receive their due payments as initially expected.

Financial Implications
From a financial perspective, Unisys anticipates a notable one-time, non-cash pre-tax settlement charge of around $228 million in the third quarter of 2025 resultant from this transaction. However, as the purchase is executed through the pension trust, it does not impact the company's immediate cash reserves, thus assisting Unisys in maintaining a strong liquidity position.

About Unisys
Unisys is recognized globally as a technology solutions provider that enables transformations for top-tier organizations around the world. The company delivers a varied range of solutions encompassing cloud services, data analytics, artificial intelligence, digital workplace enhancements, enterprise computing, and more. With a legacy spanning over 150 years, Unisys continues to empower its clients in overcoming challenges and realizing their full potential. For more insights on their offerings, visit unisys.com and connect with them on LinkedIn.

About F&G Annuities & Life, Inc.
Based in Des Moines, Iowa, FG Annuities & Life, Inc. focuses on converting the aspirations of Americans into tangible realities through its comprehensive suite of insurance solutions. Catering to both retail annuity and life customers and institutional clients, FG stands out as a leading provider in the market, committed to facilitating security and peace of mind through robust financial products.

Conclusion
The completion of this transaction marks a critical milestone in Unisys’ journey to streamline its pension obligations while maintaining a strong fiscal posture. Both Unisys and F&G are positioned to foster greater stability for the beneficiaries involved, emphasizing their commitment to delivering on their financial promises without compromise. This deal not only reflects a strategic financial maneuver for Unisys but also showcases its dedication to the welfare of its stakeholders. Looking ahead, the company aims to continue its proactive approach in managing its pension strategies effectively, ultimately striving towards achieving long-term sustainability and growth.