Canada Life, a British insurance company that provides life insurance and pension risk transfer services, has completed a £36 million full buy-in of the HSB Engineering Insurance Services Limited pension plan. Canada Life said the deal ensures benefits for 191 pensioners and 128 deferred members, providing greater certainty for future benefit payments.
Sponsoring employer HSB UK & Ireland, part of a UK-based underwriting company specializing in engineering and technical insurance and inspection services in the construction, manufacturing, leisure, retail and commercial sectors and public services, joins Canada Life in supporting the arrangement.
Mercer served as the lead broker on the transaction and provided actuarial and investment advice to the program throughout the process.
The trustees are chaired by fiduciary services firm Vidett, who oversees negotiations on behalf of members, and Vidett works with advisers to support governance and decision-making. Pinsent Masons advises trustees on legal matters, while Canada Life is supported by its in-house legal team.
The acquisition is part of ongoing pension risk transfer activities in the UK and Canada Life is working with the plan and its advisors to finalize the agreement in a coordination process with all parties involved.
Shreyas Sridhar, Managing Director of Bulk Purchase Annuities at Canada Life, commented: “We are pleased to partner with the plan’s trustees, Mercer and Vidett, to deliver a tailored de-risking solution backed by a disciplined, competitive price. This transaction gives members confidence that their benefits will be protected during and throughout retirement by a trusted, well-capitalized and reliable partner.”
Helen Ross-Smith, senior principal and risk transfer advisor at Mercer, said: “It was a pleasure to advise the trustees and support them in achieving this important milestone for the scheme and its members. By acting as lead broker, actuary and investment adviser, we were able to ensure a smooth process for members and trustees. The completion of this transaction is an excellent outcome for all parties.”
Ben Salmons, Account Director at Vidett, added: “Like many plans, the journey to purchase is a long road. I would like to thank the trustees, our advisors and sponsors for the tremendous amount of work, collaboration and commitment they have put in to achieve this milestone. Canada Life has delivered a competitive price but, equally importantly, has demonstrated a commitment to delivering great results for the plan and our members. This transaction is a very positive step for members and we look forward to continuing our work following the transaction.”
