Reinsurance News

Aon secures eighth bulk annuities purchase across Smiths Group pension schemes

3rd July 2019 - Author: Luke Gallin

Global re/insurance brokerage Aon has now secured eight bulk annuities across the Smiths Group’s two pension schemes, totalling approximately £1.6 billion.

Aon logoThe £3 billion Smiths Industries Pensions scheme has secured its eighth bulk annuity purchase and its second with Canada Life. The new £176 million bulk annuity is part of a wider framework that sees the trustee and employer work together to support further de-risking.

Following the latest bulk annuity transaction, risks have been removed for the majority of the pensioners liabilities.

Aon advised the trustees using its Compass bulk annuity platform, making this the eighth time the global insurance and reinsurance broker has advised the firm.

Chair of the Trustee of the Smiths Industries Pension Scheme, Nicholas Godden said: “This is another key stride in our de-risking strategy, taking advantage of the strong backing of counter-parties like Canada Life, and thanks to our advisers and the Group’s continued support.”

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Canada Life Executive Director, Richard Priestley added: “We are very pleased to expand our relationship with Smiths Industries Pension Scheme. As we become more established in the bulk annuity market, more clients are recognising the value and security we offer.”

While Dominic Grimley, Risk Settlement adviser at Aon, said: “This transaction followed a period of careful market monitoring, where we waited for the right opportunities to emerge. All parties involved have considerable market experience and this encouraged a swift conclusion once pricing was accessible.”

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