An undisclosed pension scheme has insured the remaining benefits of its defined benefit pension scheme with Canada Life in a transaction worth £58m, following a competitive tender process run by Hymans Robertson.
This is the first ever deferred member transaction Canada Life has completed and it secures the benefits of around 570 members, including over 300 deferred members.
The scheme received legal advice from CMS and Canada Life received legal advice from Eversheds alongside their in-house legal team.
Tim Coulson, managing director, bulk purchase annuities at Canada Life, said the life office would be looking for other opportunities in a rapidly growing market.
Iain Church, lead transaction adviser and head of core transactions at Hymans Robertson, said: “We are very pleased to have de-risked the scheme for its members and led Canada Life’s first deferred transaction. This transaction is also a great milestone for the wider bulk annuity market, with another insurer having now developed the capability to insure deferred members."
Natalie Mee, partner at CMS advising the trustee said: “In an increasingly busy market, it’s great to see Canada Life completing their first deferred buy-in, and we were pleased to be a part of helping them reach this milestone, in the interests of our client."
Mark Latimour, partner, Eversheds Sutherland, added: “We are delighted to have supported Canada Life on their first ever deferred member transaction which represents the culmination of a significant work by the team at Canada Life to bring this to the bulk annuity market. It’s a fantastic milestone for Canada Life.”
