Canada Life has successfully executed a £361 million buy-in transaction, marking its largest single deal to date. This agreement, finalized with an undisclosed pension scheme, encompasses over 850 deferred members and approximately 650 pensioners.
This milestone transaction is noteworthy for its inclusion of deferred lives, reflecting Canada Life’s growing expertise in managing intricate schemes. Mercer played a pivotal role as the lead broker, offering de-risking and investment advice to the Trustees. Additionally, CMS provided legal counsel to the Trustees, while Capita served as the scheme’s actuarial adviser and administrator. Eversheds Sutherland extended legal advice to Canada Life, and Sackers represented the employer.
Shreyas Sridhar, Business Development Director for Bulk Purchase Annuities at Canada Life, remarked, “This transaction represents a significant milestone for Canada Life. It stands as our largest deal to date involving deferred lives and demonstrates our ability to manage complex schemes containing both deferred members and pensioners.
“The process was highly competitive, and we are thrilled that the Trustees chose Canada Life to secure the benefits for its members. By collaborating with the Trustees and advisers, and leveraging the scheme’s robust funding position, we were able to secure enhanced benefits for the members, thereby bolstering their financial security in retirement. We look forward to maintaining this momentum into 2025 and beyond.”
Andrew Pugh, Risk Transfer Principal at Mercer, added, “As the lead broker for this buy-in, it is gratifying to witness the scheme’s de-risking journey culminate in a manner that secured all the members’ benefits along with some agreed-upon augmentations requested by the Trustees.
“Mercer has been advising this scheme for an extensive period on minimizing investment risk. We conducted a clear and streamlined broking process, attracting substantial interest from insurers, ultimately resulting in a positive outcome for the Trustees, members, and the sponsoring company.”
