The Andrews Sykes Group Pension Scheme has insured the benefits of its defined benefit pension scheme with Canada Life in a transaction of £30 million, following a competitive tender process run by leading pensions and financial services consultancy, Hymans Robertson.
This now marks the third deferred member transaction Canada Life has completed.
If you recall, in July 2023, Canada Life successfully completed a £58 million deferred member buy-in.
Going back to this latest transaction, it has been confirmed that it secures the benefits of around 440 members, of which around 160 are deferred members.
At the same time, the Scheme received legal advice from Neon Legal, while Canada Life received legal advice from their in-house legal team.
“Delivering our third deferred member transaction in just three months shows how busy the buyout market is. We will continue to focus on delivering fair value to trustees and their scheme members, developing our proposition to compete in wider opportunities in a rapidly growing market,” said Tim Coulson, managing director, bulk purchase annuities at Canada Life.
“We are very pleased to have helped the Trustees secure this buy-in, removing the majority of the Scheme’s risks. With current market busyness, it can be hard for schemes of this size to get insurer engagement. However, this transaction shows there continues to be opportunities for small schemes to secure an excellent transaction and great pricing if they approach the market in the right way. This outcome was only possible due to the efforts of the Scheme’s Trustees, their advisers, and the team at Canada Life,” commented Lara Desay, lead transaction adviser from Hymans Robertson.
“We are delighted to have advised the Trustees on this transaction with Canada Life. It is difficult for smaller schemes to obtain both the legal and commercial expertise required to complete projects of this nature, and we think this is a great example of how to successfully achieve a buy-in with a positive outcome for members of the Scheme at value. A great deal of credit is owed to the Trustees, Canada Life and Hymans Robertson. The excellent collaboration between the parties ensured that the transaction was completed smoothly,” added Tushar Bhate, Head of Pensions at Neon Legal advising the Trustees.
