Canada Life, a UK insurer providing life insurance and pension risk transfer services, has completed a £36 million full-scheme buy-in with the pension scheme of HSB Engineering Insurance Services Limited. Canada Life said the transaction secures the benefits of 191 pensioner members and 128 deferred members, providing greater certainty over future benefit payments.
The sponsoring employer, HSB UK & Ireland, part of a UK underwriting business specialising in engineering and technology insurance and inspection services across construction, manufacturing, leisure, retail and commercial sectors as well as public services, supported the arrangement alongside Canada Life.
Mercer acted as lead broker on the transaction and also provided actuarial and investment advice to the scheme throughout the process.
The Trustees, chaired by fiduciary services firm Vidett, oversaw the negotiations on behalf of members, with Vidett working with advisers to support governance and decision-making. Pinsent Masons advised the Trustees on legal matters, while Canada Life was supported by its in-house legal team.
The buy-in forms part of ongoing pension risk transfer activity in the UK, with Canada Life working with the scheme and its advisers to complete the agreement in a coordinated process involving all parties.
Shreyas Sridhar, Managing Director, Bulk Purchase Annuities at Canada Life, commented: “We are pleased to have collaborated with the scheme’s trustees, Mercer and Vidett to deliver a tailored derisking solution supported by disciplined, competitive pricing. This transaction provides members with confidence that their benefits will be secured into and throughout retirement by a trusted, well-capitalised and dependable partner.”
Helen Ross-Smith, Senior Principal and Risk Transfer Consultant at Mercer, said: “It was a pleasure to advise the trustees and support them in achieving this important milestone for the Scheme and its members. By acting as the lead broker, actuarial, and investment adviser we were able to ensure this process ran smoothly for the members and trustees. The completion of this transaction is an excellent result for all parties.”
Ben Salmons, Client Director at Vidett, added: “As with many schemes, the journey to buy-in has been a long road. I would like to recognise the huge amount of work, collaboration and commitment from the trustees, our advisers and the sponsor to get to this milestone. Canada Life provided competitive pricing, but equally importantly showed commitment to delivering great outcomes for the scheme and our members. This transaction is a hugely positive step for members, and we look forward to continuing the work post transaction.”
