Canada Life completes third buy-in in three months
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Canada Life UK has completed a £30m buy-in transaction with the Andrew Sykes Group Pension Scheme, securing the benefits of around 440 members, of which around 160 are deferred members.
This is the third deferred member transaction the insurer has completed, following a £58m buy-in with an undisclosed pension scheme in July and a £24m transaction with Roadchef in August.
Tim Coulson, managing director, bulk purchase annuities at Canada Life, said: “Delivering our third deferred member transaction in just three months shows how busy the buyout market is. We will continue to focus on delivering fair value to trustees and their scheme members, developing our proposition to compete in wider opportunities in a rapidly growing market.”
Canada Life said the transaction was made possible following a “competitive tender process” run by Hymans Robertson.
Lara Desay, lead transaction adviser from Hymans Robertson, said: “With current market busyness, it can be hard for schemes of this size to get insurer engagement. However, this transaction shows there continues to be opportunities for small schemes to secure an excellent transaction and great pricing if they approach the market in the right way.”
The scheme received legal advice from Neon Legal. Canada Life received legal advice from its in-house legal team.
Tushar Bhate, head of pensions at Neon Legal advising the trustees, said it is difficult for smaller schemes to obtain the legal and commercial expertise required to complete projects of this nature, adding: “We think this is a great example of how to successfully achieve a buy-in with a positive outcome for members of the scheme at value.”
What attracts insurers to complete small transactions?
