Canada Life has completed a £189 million full-scheme buy-in transaction with an unnamed pension scheme in the healthcare sector, securing the future retirement benefits of over 1,100 deferred members and over 600 members with pensions in payment.
The buy-in is the culmination of almost two years’ work by the Trustee, in partnership with the sponsoring employer, to prepare the scheme to come to market. The Trustee selected Canada Life as its insurer after a highly competitive market process through which Canada Life demonstrated adaptability and a willingness to collaborate with the Trustee to achieve its objectives.
A key element of the deal is Canada Life will cover the enhanced benefits of deferred members who are still working for the sponsoring employer, in line with the scheme’s existing terms. Canada Life also delivered a flexible solution that allows the Trustee to adjust the insurance for any members who leave the company before the scheme has completed buyout.
WTW led the advice on the transaction to IGG, the sole Trustee for the scheme. The Trustee was advised on legal issues by Stephenson Harwood and Mercer was the scheme’s actuarial and investment adviser. Canada Life was advised by its in-house legal team, while the company was advised by WTW and Baker McKenzie.
Shreyas Sridhar, Managing Director, Bulk Purchase Annuities at Canada Life, commented: “We are pleased that Canada Life has been selected by the Trustee of this healthcare sector pension scheme to help the sponsoring employer and Scheme achieve its long-term goals. I would like to thank the Trustee and sponsoring employer for the collaborative working culture we have already built.
“As a UK life insurer with a strong 120-year heritage of understanding customers’ retirement needs, it’s important to Canada Life that our pensions buy-in arrangements deliver bespoke, valuable solutions to a company’s corporate financing needs and provide peace of mind to the company and trustees that their members will be well-cared for.”
Dickon Best, a Professional Trustee at Independent Governance Group and Trustee Director for the Plan said: "As Professional Corporate Sole Trustee, we are pleased to have helped steer the scheme through to a successful buy-in transaction with Canada Life. As a result of the deal, all our members now have their benefits secured, and we are happy to have achieved such a strong outcome. We would like to thank our advisory teams, WTW, Mercer, Stephenson Harwood and the Company for their support throughout the process, as we worked together to deliver our shared objectives.”
Gemma Millington, Senior Director at WTW said: “We were delighted to work with IGG and the sponsoring employer to achieve their objective in securing benefits for all scheme members. Initial quotes were received from eight insurers, demonstrating the appetite of insurers for deals of all sizes and contributing to very attractive terms being achieved. We expect high levels of competition between insurers to continue in 2026 which is good news for schemes preparing to approach the market next year.”
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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.