Experts calls it an important milestone for the annuity market
Canada Life has completed its first-ever deferred member buy-in, the transaction amounting to £58 million, following a tender process run by Hymans Robertson.
Tim Coulson, managing director of bulk purchase annuities at Canada Life, applauded the undisclosed pension scheme, noting it is the first deferred scheme Canada Life has delivered.
“It’s great to be able to deliver our first deferred scheme,” said Coulson. “As we continue to focus on developing our capability, we look forward to participating in wider opportunities in a rapidly growing market.”
The transaction would secure the benefits of around 570 members, over 300 of which are deferred members. Canada Life received legal advice from their in-house legal team and Eversheds, while the Scheme received legal advice from CMS.
Iain Church, lead transaction adviser and Head of Core Transactions at Hymans Robertson, welcomes the scheme, noting it as an important milestone not only for Canada Life but also for the “wilder bulk annuity market, with another insurer having now developed the capability to insure deferred members.”
“With increased market busyness making it harder for schemes of this size to get insurer engagement, this transaction shows there continues to be opportunities for schemes like this to secure an excellent transaction and pricing if they approach the market in the right way,” Church said.
“This great outcome was only possible due to the effort and willingness of the scheme’s Trustees, their advisers, and the team at Canada Life, and it was a pleasure to be a part of.”
“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,” said Natalie Mee, partner at CMS advising the Trustee.
Canada Life is a provider of group insurance solutions and manages retirement and investments as well as looking after the protection needs of individuals and companies.
