Insurance and financial services company Canada Life has completed a £189 million comprehensive plan acquisition involving an unnamed pension scheme in the healthcare sector.
The transaction successfully protected the future retirement benefits of more than 1,100 deferred members and more than 600 pension members.
The acquisition is the result of nearly two years of collaboration between trustees and sponsoring employers to prepare the scheme for the market.
Canada Life was selected as the insurer following a highly competitive market process, demonstrating its flexibility and collaborative approach in helping trustees achieve their objectives, the announcement said.
Crucially, the agreement ensures that Canada Life will provide extended benefits to deferred members who remain employed by the sponsoring company under the current terms of the plan.
Canada Life also plans to offer flexible arrangements that allow trustees to adjust coverage for any members who may leave the company before the plan completes an acquisition.
Shreyas Sridhar, Managing Director of Canada Life’s Bulk Purchase Annuities business, commented: “We are delighted that Canada Life has been selected by the trustees of this healthcare industry pension plan to help the sponsoring employer and the plan achieve its long-term objectives. I would like to thank the trustees and sponsoring employer for the collaborative working culture we have established.
“As a British life insurance company with a 120-year history of understanding its customers’ retirement needs, it is important to Canada Life that our pension purchase arrangements provide a bespoke, value-for-money solution to the company’s corporate financing needs and give companies and trustees peace of mind that their members will be well looked after.”
WTW advised IGG, the scheme’s sole trustee, on the transaction. The trustees are advised on legal matters by Stephenson Harwood, while Mercer serves as the plan’s actuarial and investment advisor.
Canada Life was advised by its in-house legal team, while the company was advised by WTW and Baker McKenzie.
Gemma Millington, senior director at WTW, said: “We are delighted to be working with IGG and sponsoring employers to achieve our goal of ensuring benefits for all scheme members.
“We received preliminary quotes from eight insurers, which demonstrates interest from insurers in deals of all sizes and helps achieve very attractive terms. We expect intense competition among insurers to continue in 2026, which is good news for plans preparing to enter the market next year.”