US breakfast food firm Kellogg’s has offloaded $590m of its liabilities linked to its UK pension scheme to an undisclosed insurer.
The Michigan-based firm revealed the deal in its latest 10-Q filings with the US Securities and Exchange Commission, which stated the transaction closed in May.
The deal was structured as a buy-in, meaning that the cereal maker retains responsibility for the administration and payment of the pensions, with the longevity and investment risk sitting on the insurer’s balance sheet.
Kellogg’s move follows a $268m buy-in for its UK plan in December 2022 and the third major pension de-risking move by the firm.
In 2020 it offloaded close to $500m-worth of its US pension liabilities to another, undisclosed, insurer.
Kellogg’s said in its 10-Q filing that its US pension plans improved their funding position in 2022 because of rising interest rates despite lower than expected investment returns.