Marvin OnumonuCanada Life has completed a third buy-in deal with A.G. Barr p.l.c. for £41m, securing future benefits for 300 members of the drinks maker’s pension scheme.
The agreement covers 160 deferred members and 140 pensioners of the A.G. Barr p.l.c. (2008) Pension and Life Assurance Scheme.
This is the final buy-in, following deals in 2016 and 2018 that already covered around 40% of the scheme’s liabilities.
Hymans Robertson was the scheme’s broker, actuarial adviser, administrator and de-risking investment adviser, with legal advice from Shepherd and Wedderburn.
Canada Life used in-house lawyers.
Shreyas Sridhar, managing director for BPA at Canada Life, said: “The established working relationship had a positive influence on securing a good outcome for the Scheme and its members.
“We are proud that the Trustee chose to work exclusively with Canada Life on this bulk purchase annuities transaction as a result of the high bar we set ourselves in our client relationship management.
“Through our earlier deals with the A.G. Barr Scheme, our team has invested time in understanding how the Scheme operates and ‘bottled’ that knowledge.”
Sridhar added: “By monitoring market conditions and affordability with Canada Life, the Trustee board was able to move quickly at the right time to execute the buy-in.
“We are grateful for the trust and collaboration of the Trustee board and their advisers, which allowed us to deliver an outstanding outcome for the Scheme and its members.”
Mahad Farooqui, risk transfer specialist at Hymans Robertson and lead adviser, said: “We’re delighted to have completed this final buy-in for the Scheme with Canada Life.
“It marks a significant milestone working with the Trustee board on their journey to secure the long-term future of members’ benefits of the Scheme.
“The continuity of working with the same insurer across all three transactions has brought real efficiencies and confidence to the process, resulting in a great outcome for the Trustee and members of the Scheme.”
Amanda Switzer, partner at Hymans and scheme actuary, said: “We’re delighted to have supported the Trustee in securing a third and final buy-in—an incredible milestone in the Scheme’s de-risking journey.
“Hymans have been Scheme Actuary to A.G. Barr since 2012, and it’s been a privilege to work with such a dedicated Trustee board on their long-term journey planning.
“We’ve seen the Scheme’s funding go from strength to strength and are proud to have played a part in getting to this point where members’ benefits have been secured – a great outcome for all parties and most importantly, for the Scheme’s members.”
Richard Jones, senior associate at Shepherd and Wedderburn, said: “It was a pleasure working with the Trustee on the third buy-in transaction for the Scheme.
“We have been legal advisers to the Scheme since 2009 and advised the Trustee on the previous two buy-ins with Canada Life.
“The Trustee has had a clear and well-developed strategy for the Scheme and completing this final buy-in transaction represents a significant outcome, providing greater security for the Scheme’s members.”
