Canada Life’s Largest Pension Scheme Buy-In
Canada Life has successfully finalized a substantial £361 million buy-in transaction with an undisclosed pension scheme. This strategic move encompasses coverage for over 850 deferred members and around 650 pensioners, marking Canada Life’s most significant transaction to date, particularly in dealing with deferred lives.
Collaborative Efforts and Advisers
Leading the initiative, Mercer served as the primary broker and provided de-risking and investment advisory services to the Trustees. CMS handled the legal aspects for the Trustees, while Capita managed actuarial advising and administration duties. Additionally, Eversheds Sutherland offered legal counsel to Canada Life, and Sackers represented the employer.
Shreyas Sridhar, Business Development Director for Bulk Purchase Annuities at Canada Life, remarked, “This transaction marks a pivotal achievement for Canada Life. It is not just our largest deal involving deferred lives but also underscores our ability to manage intricate schemes comprising both deferred members and pensioners.”
Emphasizing the competitive nature of the tender process, Sridhar added, “We are thrilled that the Trustees opted for Canada Life to insure their members’ benefits. By collaborating closely with the Trustees and advisers, and leveraging the scheme’s robust funding position, we managed to secure enhanced benefits for the members, thereby bolstering their financial security during retirement. We are eager to maintain this momentum into 2025 and beyond.”
Mercer’s Perspective on the Buy-In
Andrew Pugh, Risk Transfer Principal at Mercer, stated, “As the lead broker for this buy-in, it’s gratifying to conclude the scheme’s de-risking journey by securing all member benefits along with some agreed-upon augmentations requested by the Trustees.”
He continued, “Having advised this scheme for an extended period on mitigating investment risks, we conducted a clear and efficient broking process. This approach generated significant interest from insurers, ultimately resulting in a favorable outcome for the Trustees, members, and the sponsoring company.”
