Canada Life has completed a third pension scheme buy-in transaction worth £41m with drinks maker A.G. Barr p.l.c., preserving the future benefits of 300 pension scheme members.
The beverage manufacturer, whose brands include IRN-BRU, Rubicon, FUNKIN and Boost, and the Trustee board of the A.G. Barr p.l.c. (2008) Pension and Life Assurance Scheme (“Scheme”) have signed a third and final deal with Canada Life to cover the remaining 160 deferred members and 140 pensioners of the DB pension scheme.
This latest arrangement builds on an established collaboration between the Scheme’s Trustee, its adviser Hyman Robertson and the insurer Canada Life, which already covers approximately 40% of the Scheme’s liabilities through earlier 2016 and 2018 buy-ins.
Hymans Robertson acted as the pension scheme broker, actuarial adviser, administrator and de-risking investment adviser. The Trustee’s legal adviser was Shepherd and Wedderburn LLP. Canada Life was advised by in-house lawyers.
Commenting, Shreyas Sridhar, Managing Director for Bulk Purchase Annuities at Canada Life, said:
“The established working relationship had a positive influence on securing a good outcome for the Scheme and its members.
"We are proud that the Trustee chose to work exclusively with Canada Life on this bulk purchase annuities transaction as a result of the high bar we set ourselves in our client relationship management. Through our earlier deals with the A.G. Barr Scheme, our team has invested time in understanding how the Scheme operates and ‘bottled’ that knowledge.
"By monitoring market conditions and affordability with Canada Life, the Trustee board was able to move quickly at the right time to execute the buy-in. We are grateful for the trust and collaboration of the Trustee board and their advisers, which allowed us to deliver an outstanding outcome for the Scheme and its members.”
Mahad Farooqui, Risk transfer specialist at Hymans Robertson and lead adviser, said:
“We’re delighted to have completed this final buy-in for the Scheme with Canada Life. It marks a significant milestone working with the Trustee board on their journey to secure the long-term future of members’ benefits of the Scheme. The continuity of working with the same insurer across all three transactions has brought real efficiencies and confidence to the process, resulting in a great outcome for the Trustee and members of the Scheme."
Amanda Switzer, Partner at Hymans and Scheme Actuary:
“We’re delighted to have supported the Trustee in securing a third and final buy-in—an incredible milestone in the Scheme’s de-risking journey. Hymans have been Scheme Actuary to A.G. Barr since 2012, and it’s been a privilege to work with such a dedicated Trustee board on their long-term journey planning. We’ve seen the Scheme’s funding go from strength to strength and are proud to have played a part in getting to this point where members’ benefits have been secured - a great outcome for all parties and most importantly, for the Scheme’s members.”
Richard Jones, Senior Associate at Shepherd and Wedderburn, said:
“It was a pleasure working with the Trustee on the third buy-in transaction for the Scheme. We have been legal advisers to the Scheme since 2009 and advised the Trustee on the previous two buy-ins with Canada Life. The Trustee has had a clear and well-developed strategy for the Scheme and completing this final buy-in transaction represents a significant outcome, providing greater security for the Scheme’s members.”
-ENDS-
Notes to editors
Enquiries:
Press enquiries should be directed to:
Julie Hughes-Edwards, Canada Life,
07803 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