Canada Life has completed a deferred member buy-in with the Andrews Sykes Group Pension Scheme for £30m.
This is Canada Life’s third deferred member transaction. Around 440 members—160 of whom are deferred members—have the benefits secured by the purchase. Neon Legal provided legal counsel to the Scheme. Canada Life’s internal legal department provided legal counsel.
Canada Life managing director, bulk purchase annuities Tim Coulson says: “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.”
Hymans Robertson lead transaction adviser Lara Desay says: “We are very pleased to have helped the Trustees secure this buy-in, removing the majority of the Scheme’s risks. 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. This outcome was only possible due to the efforts of the Scheme’s Trustees, their advisers, and the team at Canada Life.”
Neon Legal head of pensions Tushar Bhate says: “We are delighted to have advised the Trustees on this transaction with Canada Life. It is difficult for smaller schemes to obtain both the legal and commercial expertise required to complete projects of this nature, and we think this is a great example of how to successfully achieve buy-in with a positive outcome for members of the Scheme at value. A great deal of credit is owed to the Trustees, Canada Life and Hymans Robertson. The excellent collaboration between the parties ensured that the transaction was completed smoothly.”
