Deal moves retiree liabilities off balance sheet with no hit to Q1 2026 earnings
Laurentian Bank of Canada is shifting about $60m in pension obligations off its balance sheet by purchasing group annuity contracts from a Canadian insurer.
The deal transfers pension obligations and related assets for three registered defined benefit pension plans, covering roughly 400 retirees, beneficiaries and deferred members of Laurentian Bank.
The insurer will administer and pay all benefits to these participants starting in April 2026.
Obligations for active plan members remain with the bank and continue unchanged.
Following the transaction, benefits for the affected plan participants will fall under the protection of Assuris, the life insurance compensation association designated under the Insurance Companies Act of Canada.
“We are pleased to have reached this agreement, which helps ensure that retirees, beneficiaries and deferred members can receive their benefits from a leading Canadian insurer,” said Yvan Deschamps, chief financial officer at Laurentian Bank of Canada.
He said the insurer is recognized for its expertise and its ability to manage long-term commitments sustainably.
Laurentian Bank says the agreement reduces its non-operating financial risk and administrative costs and further simplifies its operations. TELUS Health advised the bank on the transaction.
The bank expects no significant impact on its financial results for the first quarter of 2026.
