Alcoa buys group annuity contracts for certain US pension plans

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PITTSBURGH–(BUSINESS WIRE)–Alcoa Corporation (NYSE: AA) today announced the purchase of group annuity contracts that will facilitate the transfer of approximately $1 billion in obligations and defined benefit pension plan assets for certain U.S. retirees and beneficiaries.

The transfer, which will be completed later this month, further enhances Alcoa’s strong balance sheet, reduces the risk of pension plan liability volatility and continues to meet commitments to retirees and beneficiaries. This is the company’s fifth retirement annuity transaction for a total transfer of approximately $3.3 billion in pension obligations and assets from 2018 to date.

The group annuity contracts will be executed by two subsidiaries of Athene Holding Ltd. (Athens). Athene will assume payments for approximately 4,400 US retirement plan participants. Participants will have no change in their benefits and Athene will take over payment obligations in November 2022.

Athene, through its subsidiaries, is a leading retirement services company with total assets of $246.1 billion as of March 31, 2022. With operations in the United States, Bermuda and Canada, Athene specializes in helping clients achieve financial security and is a settlement solutions provider. Athene’s principal subsidiary insurance companies have an “A+” from Fitch Ratings and Standard and Poor’s Global Ratings, an “A” from AM Best and an “A1” from Moody’s Investors Service.

In the third quarter of 2022, Alcoa expects to record a non-cash settlement charge of approximately $635 million (before and after tax), or $3.41 per share, related to the annuity transaction.

Alcoa expects its U.S. defined benefit pension plans to remain more than fully funded after the transfer is complete.

About Alcoa Corporation

Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operational excellence, caring for people and courageous leadership, our goal is to turn raw potential into real progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed groundbreaking innovations and best practices that have led to greater efficiency, safety, sustainability and communities. strong wherever we operate.

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Forward-looking statements

This press release contains statements relating to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing words such as “objective “, “ambition”. “, “anticipates”, “believes”, “could”, “develops”, “strives”, “estimates”, “expects”, “plans”, “aims”, “intends” , “can”, “perspective”, “plans”, “potential”, “projects”, “reach”, “seek”, “see”, “should”, “targets”, “will”, “work”, ” should” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions, it cannot guarantee that these expectations will be achieved and it is possible that actual results differ materially from those indicated by these forward-looking statements. statements due to a variety of risks and uncertainties. Additional information regarding factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa Corporation’s filings with the Securities and Exchange Commission. Alcoa Corporation disclaims any obligation to publicly update any forward-looking statement, whether in response to new information, future events or otherwise, except as required by applicable law.

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