The Samworth Brothers Ltd Superannuation Scheme, for employees of the food producer, has agreed a £400m full buy-in covering the benefits of more than 3,000 pensioners and 4,000 deferred members, ahead of a court hearing to clarify what some members are due. 

The trustees chose Canada Life for the contract, which has to provide flexibility as some members' pension benefits might increase.

“This transaction is a significant milestone for the Scheme and provides greater security for our members' benefits. Three years ago, when the scheme had a substantive buy-in shortfall, few would have imagined that achieving a full buy-in would be possible in such a timeframe," said trustee chair Quentin Woodley.

Chief legal officer at family-owned Samworth Brothers, Sunita Kaushal, added: "The transaction reflects what can be achieved through true partnership, clear focus, and a shared commitment to deliver the best possible outcome for all the members.” 

The deal was led by LCP, who are also the scheme administrators, actuary and investment advisers. LCP partner Imogen Cothay stressed that less than three weeks passed between the selection of the insurer and execution, despite the uncertainty over benefits.

She added that Canada Life put in place an "innovative solution" to provide flexibility to amend benefits if necessary but did not go into more detail on how this would be achieved.

The trustees and Samworth have asked the High Court to clarify if a deed from 1992 has been interpreted correctly, with a hearing scheduled for November. The issues at stake are whether vague equalisation wording means some members' pension age was in fact 60 until 1999 rather than 65, and if pre-97 increases are mandatory rather than discretionary. A six-year forfeiture clause in the scheme's rules, and similar limitation period from the Equality Act, will also be considered.

Tiziana Perrella, a professional trustee at Dalriada and former buyout adviser, said schemes with significant uncertainty can get insured but "would have to make a good case to the insurer", including having answers ready for any questions the insurer might ask. A scheme size of about £300m to £800m also helps in a situation like this, she noted.

Generally, insurers have now seen everything when it comes to scheme complexity, Perrella believes. "You can't faze them," she said. Whether schemes can get a quote is therefore not so much a question about the insurer's ability to provide a solution but the amount of work it involves – in other words, whether the buyout provider wants to maintain its capacity for a scheme that is more efficient to transact. 

Where trustees are unsure if they can get a quote because of scheme complexity, Perrella advised to simply speak to insurers to find out how an insurer would look at the scheme. 

The Samworth Brothers scheme could mean work for Canada Life but will boost its transacted assets and deal count. In the 12 months ending June 2025, the insurer had a 2% market share with eight transactions of an average £108m, according to Hymans Robertson. This year, excluding the latest deal, Canada Life has announced seven buy-ins of a combined £394m, though some of these likely completed in 2025. 

Chief executive of Canada Life UK, Emma Watkins, said about the Samworth Brothers win: “This buy-in transaction is the result of clear priorities, strong collaboration and a well‑timed approach to the market – the key ingredients for a successful outcome.”