Canada Life, an insurance and financial services company, has completed a full-scheme buy-in transaction worth £189 million with an unnamed pension scheme in the healthcare sector.
This deal successfully secures the future retirement benefits of over 1,100 deferred members and over 600 members with pensions in payment.
The buy-in is the result of almost two years of collaborative work between the Trustee and the sponsoring employer to prepare the scheme for the market.
Canada Life was chosen as the insurer following a highly competitive market process, demonstrating its flexibility and cooperative approach in helping the Trustee achieve its goals, according to the announcement.
Crucially, the agreement ensures Canada Life will cover the enhanced benefits for deferred members still employed by the sponsoring company, in line with the scheme’s current terms.
Canada Life is also set to provide a flexible arrangement, allowing the Trustee to adjust the insurance coverage for any members who may leave the company before the scheme completes its buyout.
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.”
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.
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.”
