An unnamed pension scheme has completed a £361m full scheme buy-in transaction with Canada Life, covering over 850 deferred members and approximately 650 pensioners. The deal is Canada Life’s largest single transaction to date covering deferred lives.
Mercer acted as lead broker and was the trustees’ de-risking and investment adviser. The trustees were advised on legal issues throughout the process by CMS. Capita was the scheme’s actuarial adviser and administrator.
“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,” said Shreyas Sridhar, Business Development Director, Bulk Purchase Annuities at Canada Life.
“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.”
“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,” said Andrew Pugh, Risk Transfer Principal at Mercer.
“It was fantastic to advise the trustees on this significant buy-in transaction with Canada Life. It was a real team effort to get this over the line, and thanks go to all of the dedicated trustees, their advisers, and the excellent teams at CMS and Canada Life for all their hard work. This deal marks an important milestone for the trustees and the scheme. We are proud to have played a role in securing a positive outcome for the members,” added Natalie Mee, Partner at CMS.
Canada Life was advised by Eversheds Sutherland, and the employer was advised by Sackers.