Marvin OnumonuAn unnamed pension scheme has completed a £361m full scheme buy-in transaction with Canada Life, covering over 850 deferred members and around 650 pensioners.
This is Canada Life’s largest deal so far involving deferred lives.
Mercer acted as lead broker and advised the trustees on de-risking and investment.
CMS provided legal advice for the trustees during the process, while Capita served as the scheme’s actuarial adviser and administrator.
Canada Life received advice from Eversheds Sutherland, and Sackers advised the employer.
Shreyas Sridhar, business development director, bulk purchase annuities at Canada Life, said: “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.
“This was a highly competitive tender process, and we are delighted that the Trustees chose Canada Life to insure the benefits of its members.”
Sridhar added: “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.”
Andrew Pugh, risk transfer principal at Mercer, said: “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.”
Natalie Mee, partner at CMS, said: “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.”
