An unnamed pension scheme has completed a £361m full scheme buy-in transaction with Canada Life, covering over 850 deferred members and approximately 650 pensioners.
The deal is Canada Life’s largest single transaction to date covering deferred lives.
Mercer acted as lead broker and was the Trustees’ de-risking and investment adviser. The Trustees were advised on legal issues throughout the process by CMS. Capita was the scheme’s actuarial adviser and administrator. Canada Life was advised by Eversheds Sutherland, and the employer was advised by Sackers.
Shreyas Sridhar, Business Development Director, Bulk Purchase Annuities at Canada Life commented:
“Completing this transaction is a significant milestone for Canada Life. It is our largest deal to date covering deferred lives, and continuing evidence that we have the capability to look after complex schemes with both deferred members and pensioners.
“This was a highly competitive tender process, and we are delighted that the Trustees chose Canada Life to insure the benefits of its members. By working with the Trustees and advisers, and building on the scheme’s strong funding position, we helped to secure improved benefits for the members that will enhance their financial security in retirement. We look forward to continuing the momentum that we have worked hard to build into 2025 and beyond.”
Andrew Pugh, Risk Transfer Principal at Mercer, commented:
As the lead broker on this buy-in, it is rewarding to see the scheme’s de-risking journey conclude in a way that secured all the members’ benefits and some agreed augmentations the Trustees had asked for. Mercer has advised this scheme for a considerable period of time on reducing investment risk and we undertook a clear and streamlined broking process which resulted in a large amount of interest from insurers and, ultimately, a positive outcome for the Trustees, members and the sponsoring company.
Natalie Mee, Partner at CMS, commented:
"It was fantastic to advise the Trustees on this significant buy-in transaction with Canada Life. It was a real team effort to get this over the line, and thanks go to all of the dedicated Trustees, their advisers, and the excellent teams at CMS and Canada Life for all their hard work. This deal marks an important milestone for the Trustees and the scheme. We are proud to have played a role in securing a positive outcome for the 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