Ford Canada has signed a bulk purchase annuity deal worth C$923m ($686m) with a group of three insurers which will cover the benefits of over 2,700 scheme members.
RBC Insurance, Sun Life, and Desjardins Group teamed up to provide a group annuity for the Ford of Canada Retirement Pension Plan Number 3, to cover scheme members who retired on or before 1 June 2021.
RBC was the lead insurer on the deal, the press release announcing it did not specify how the liabilities were split between the three participating firms.
The Canada pension risk transfer market saw a record 155 transactions in 2022 and a firm involved in the Ford transaction said there was potential for further activity.
WTW, which advised on the transaction, said that 88% of Canadian private sector defined benefit pension plan liabilities remain available to be secured by annuity transactions.
On the same day the Canadian deal was announced, UK retailer Spar said its pension scheme had completed an £11m (14m) buy-in with Just Group.
Just Group has been an active trader of pension related risk so far in 2024. At the start of February it signed a $502m deal with an unnamed UK tech firm and later that month announced a similar sized reinsurance treaty with Warwick Re.
