Canada Life UK has completed a £330 million full-scheme buy-in transaction with the Comet Pension Scheme, securing the future benefits of 4,500 pension scheme members.
The sponsoring company of the Comet Pension Scheme is part of European leader in the omnichannel retail of consumer electronics and domestic appliances, culture and leisure products group Fnac Darty. The Scheme was first formed in 2004 following the de-merger of Comet from Kingfisher and subsequently became part of Fnac Darty in 2016.
LCP was appointed by the sponsoring company as lead risk transfer adviser and broker on the deal, working closely with XPS as risk transfer adviser to the Trustee. The parties collaborated with Canada Life to deliver a buy-in solution suiting the needs of the Scheme and its sponsor. XPS is the Scheme’s actuary and administrator. Eversheds Sutherland provided legal advice to the Trustee while Macfarlanes provided legal advice to Fnac Darty. Canada Life’s legal adviser was CMS.
Shreyas Sridhar, Managing Director, Bulk Purchase Annuities at Canada Life UK, commented: “I am delighted that Canada Life UK has been selected by the Comet Pension Scheme Trustees and Fnac Darty as the Scheme’s pensions derisking partner, and I thank them for the full confidence they have in the strength and expertise of Canada Life UK and our global parent Great West-Lifeco to deliver a gold standard customer experience for their members.
“This transaction is a great demonstration of what can be achieved through collaboration, and how focused planning by all the parties involved can deliver positive long-term benefits for scheme members.”
Ian Edwards, Chair of the Scheme Trustees, said: “The Trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long term security for our members’ benefits.”
Jean-Brieuc Le-Tinier, Chief Financial Officer of Fnac Darty, said: “This agreement with the UK pension Trustee represents a significant step in our long-term strategy. Working closely with the Trustee, we have covered this risk without impacting the Group's cash position and secured members’ benefits with a leading insurer. We are pleased to have completed this transaction in favourable market conditions.”
Charlie Finch, Partner at LCP and lead risk transfer adviser, said: “I am pleased to have helped the Scheme reach this major milestone providing cost certainty for Fnac Darty and long-term security for the former employees of Comet. This was a highly competitive broking process – a consistent pattern we have seen in the run-up to the year end and we expect to continue into next year offering opportunities for sponsors to de-risk their DB pension schemes.”
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Notes to Editors
Enquiries:
Press enquiries should be directed to:
Julie Hughes-Edwards, Canada Life, +44 7803 249343, julie.hughes-edwards@canadalife.co.uk
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a Canadian headquartered, international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Through its subsidiary companies, Great-West Lifeco operates in Canada, the United States, and Europe. Great-West Lifeco trades on the Toronto Stock Exchange under the ticker symbol GWO and is a member of the Power Corporation group of companies.
Canada Life Limited began operations in the United Kingdom (UK) in 1903 and provides UK individuals and businesses with a range of retirement, investment, insurance and wealth solutions. Canada Life offers individual annuities, pension de-risking solutions, home finance, estate planning and investment options, and workplace protection products.
Canada Life Limited (no.973271) is registered in England and Wales, authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Stonehaven UK Limited (no.05487702), trading as Canada Life, is registered in England and Wales and is authorised and regulated by the Financial Conduct Authority. Canada Life International Limited (no.033178C) and CLI Institutional Limited (no.108017C) are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance (Ireland) DAC (no. 440141) and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited (no.3846821), Canada Life Limited and Canada Life European Real Estate Limited (no.03846823). Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority.
Please note that while Canada Life Limited and Canada Life Asset Management Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.
www.canadalifeassetmanagement.co.uk