- The deal covers five different schemes within KION Group
KION Group has completed a circa £250m1 full scheme buy-in transaction with Canada Life. The deal covers five different UK DB pension schemes2 within the group, covering the benefits of over 3000 members.
Vidett was the sole Trustee of the five schemes, with Mercer acting as lead derisking advisers. Pinsent Mason were legal advisers to the trustee, and Canada Life was advised by Eversheds Sutherland.
Shreyas Sridhar, Business Development Director, Bulk Purchase Annuities at Canada Life commented:
“This transaction demonstrates that we are continuing to successfully modernise and build our capabilities in our Bulk Annuities business at Canada Life, particularly on schemes with deferred liabilities. It also evidences our ability to manage complexities that arise from transactions with multiple schemes. We were delighted to work with Mercer, and thanks to collaborative efforts from all parties, we are delighted to be able to support annuitants to build financially secure futures.”
James Double, Client Director, Vidett, commented:
“We have been the professional trustee to KION Group schemes since 2016 and have been working closely with KION during this intensive project to achieve this greater security for members’ benefits. This has been a complex transaction, and we’ve worked collaboratively with Mercer and Pinsent Masons to proactively find solutions to issues that emerged along the way. It’s a great example of how teamwork helps achieve pension scheme objectives.”
Maurice Speer, Partner in Mercer’s Risk Transfer team commented:
“We are proud to have advised the Trustee on this complex, multi-scheme transaction with Canada Life. This started with a patient and diligent market preparation approach over the last 2.5 years, with a focus on essential data and benefit preparation; market approach strategy; and clearly defined success criteria upfront.
“With the schemes packaged together, a competitive process achieved very attractive pricing for all schemes. The transaction completed within tight timescales due to the partnership approach between Canada Life, Vidett, Pinsent Masons, Kion and Mercer”.
Matthew de Ferrars of Pinsent Masons commented:
“It was a complex transaction involving five separate pension schemes and we were very pleased to play our part in a truly collaborative effort between all the parties, so we could reach a successful conclusion by the agreed deadline.”
Ends
Notes to Editors:
- To complete once final estimated premium calculated.
- The five schemes are Lansing Linde schemes which are part of the KION Group as follows: Lansing Linde Pension Scheme (LLPS), Lansing Linde Executive Pension Scheme (LLEPS), Lansing Linde (Blackwood) (1987) Pension Scheme (LLB87PS) Lansing Linde (Blackwood) Limited Retirement Benefits Plan (LLBRBP) and STILL Materials Handling Pension Scheme (STILL).
Enquiries:
Press enquiries should be directed to:
Elle McAtamney, Canada Life, 07913 568213, elle.mcatamney@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.