The Andrews Sykes Group Pension Scheme has insured the benefits of its defined benefit pension scheme with Canada Life in a transaction of £30m, following a competitive tender process run by Hymans Robertson. This is the third deferred member transaction Canada Life has completed.
The transaction secures the benefits of around 440 members, of which around 160 are deferred members.
The Scheme received legal advice from Neon Legal. Canada Life received legal advice from their in-house legal team.
Tim Coulson, managing director, bulk purchase annuities at Canada Life commented:
“Delivering our third deferred member transaction in just three months shows how busy the buyout market is. We will continue to focus on delivering fair value to trustees and their scheme members, developing our proposition to compete in wider opportunities in a rapidly growing market.”
Lara Desay, lead transaction adviser from Hymans Robertson, commented:
“We are very pleased to have helped the Trustees secure this buy-in, removing the majority of the Scheme’s risks. With current market busyness, it can be hard for schemes of this size to get insurer engagement. However, this transaction shows there continues to be opportunities for small schemes to secure an excellent transaction and great pricing if they approach the market in the right way. This outcome was only possible due to the efforts of the Scheme’s Trustees, their advisers, and the team at Canada Life.”
Tushar Bhate, Head of Pensions at Neon Legal advising the Trustees said:
“We are delighted to have advised the Trustees on this transaction with Canada Life. It is difficult for smaller schemes to obtain both the legal and commercial expertise required to complete projects of this nature, and we think this is a great example of how to successfully achieve a buy-in with a positive outcome for members of the Scheme at value. A great deal of credit is owed to the Trustees, Canada Life and Hymans Robertson. The excellent collaboration between the parties ensured that the transaction was completed smoothly.”
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.