An undisclosed pension scheme has insured the remaining benefits of its defined benefit scheme with Canada Life in a transaction of £58 million, following a competitive tender process run by pensions and financial services consultancy Hymans Robertson.
This marks the first ever deferred member transaction Canada Life has completed.
The transaction secures the benefits of around 570 members, including over 300 deferred members.
It was also confirmed that the scheme received legal advice from CMS. Canada Life also received legal advice from Eversheds alongside their in-house legal team.
Tim Coulson, managing director, bulk purchase annuities at Canada Life commented: “By offering to protect the benefits of members it’s great to be able to deliver our first deferred scheme. As we continue to focus on developing our capability, we look forward to participating in wider opportunities in a rapidly growing market.”
Iain Church, lead transaction adviser and Head of Core Transactions at Hymans Robertson, added: “We are very pleased to have de-risked the Scheme for its members and led Canada Life’s first deferred transaction. This transaction is also a great milestone for the wider bulk annuity market, with another insurer having now developed the capability to insure deferred members.
“With increased market busyness making it harder for schemes of this size to get insurer engagement, this transaction shows there continues to be opportunities for schemes like this to secure an excellent transaction and pricing if they approach the market in the right way. This great outcome was only possible due to the effort and willingness of the Scheme’s Trustees, their advisers, and the team at Canada Life, and it was a pleasure to be a part of.”
Natalie Mee, partner at CMS advising the Trustee said: “We are delighted to secure this excellent outcome for the Scheme and its members. In an increasingly busy market, it’s great to see Canada Life completing their first deferred buy-in, and we were pleased to be a part of helping them reach this milestone, in the interests of our client. It has been a pleasure to work so collaboratively with the Trustee, Hymans Robertson and the Canada Life team on this transaction. A huge thank you to everyone involved for their hard work and positivity.”
Mark Latimour, Partner, Eversheds Sutherland, commented: “We are delighted to have supported Canada Life on their first ever deferred member transaction which represents the culmination of a significant work by the team at Canada Life to bring this to the bulk annuity market. It’s a fantastic milestone for Canada Life.”
