An undisclosed pension scheme has insured the remaining benefits of its defined benefit pension scheme with Canada Life in a transaction of £58m, following a competitive tender process run by Hymans Robertson. This is the first ever deferred member transaction Canada Life has completed.
The transaction secures the benefits of around 570 members, including over 300 deferred members.
The Scheme received legal advice from CMS. Canada Life received legal advice from Eversheds alongside their in-house legal team.
Tim Coulson, managing director, bulk purchase annuities at Canada Life commented:
“By offering to protect the benefits of members it’s great to be able to deliver our first deferred scheme. As we continue to focus on developing our capability, we look forward to participating in wider opportunities in a rapidly growing market.”
Iain Church, lead transaction adviser and Head of Core Transactions at Hymans Robertson, commented: “We are very pleased to have de-risked the Scheme for its members and led Canada Life’s first deferred transaction. This transaction is also a great milestone for the wider bulk annuity market, with another insurer having now developed the capability to insure deferred members.
“With increased market busyness making it harder for schemes of this size to get insurer engagement, this transaction shows there continues to be opportunities for schemes like this to secure an excellent transaction and pricing if they approach the market in the right way. This great outcome was only possible due to the effort and willingness of the Scheme’s Trustees, their advisers, and the team at Canada Life, and it was a pleasure to be a part of.”
Natalie Mee, partner at CMS advising the Trustee said:
“We are delighted to secure this excellent outcome for the Scheme and its members. In an increasingly busy market, it’s great to see Canada Life completing their first deferred buy-in, and we were pleased to be a part of helping them reach this milestone, in the interests of our client. It has been a pleasure to work so collaboratively with the Trustee, Hymans Robertson and the Canada Life team on this transaction. A huge thank you to everyone involved for their hard work and positivity.”
Mark Latimour, Partner, Eversheds Sutherland, commented:
“We are delighted to have supported Canada Life on their first ever deferred member transaction which represents the culmination of a significant work by the team at Canada Life to bring this to the bulk annuity market. It’s a fantastic milestone for Canada Life.”
Press enquiries should be directed to:
Paul Keeble at Canada Life, 07833 085387, firstname.lastname@example.org
About Canada Life:
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies. Great-West Lifeco has over 38 million customers worldwide and £1.532trillion assets under administration (as at 31 December 2022).
Canada Life Limited began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions. Canada Life acquired Retirement Advantage on 3rd January 2018 for an undisclosed sum. The acquisition added over 30,000 retirement income and equity release customers and more than £2 billion of assets under management including a £1.5 billion block of in-force annuities to Canada Life.
Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance Limited and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.