Canada Life has completed a £361 million full-scheme buy-in transaction with an unnamed pension scheme, covering over 850 deferred members and approximately 650 pensioners.
This is Canada Life’s largest single transaction to date covering deferred lives.
Mercer acted as the lead broker and was the Trustees’ de-risking and investment adviser. CMS advised the Trustees on legal issues, Capita was the scheme’s actuarial adviser and administrator, Eversheds Sutherland advised Canada Life, and Sackers advised the employer.
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, said: “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.”
