Smiths Group Secures £176m Buy-in With Canada Life
FTSE 100-listed engineering company Smiths Group has struck a £176m bulk annuity deal with insurer Canada Life.
The transaction covered more than 2,000 pensioners and dependents, according to a statement from the company.
Smiths Group said roughly £800m of the Smiths Industries Pension Scheme’s liabilities had now been insured, and £1.6bn across two schemes.
The latest deal forms part of a long-term de-risking plan for the company. Consultancy group Aon, adviser to the pension schemes, said the series of buy-in deals formed “one of the market’s longest-established programmes of phased de-risking”.
The transaction was “well-timed to capture strong pricing opportunities”, Aon added.
Dominic Grimley, risk settlement adviser at Aon, said: “This transaction followed a period of careful market monitoring, where we waited for the right opportunities to emerge. All parties involved have considerable market experience and this encouraged a swift conclusion once pricing was accessible.”
Smiths Group’s pension funds had £3.8bn in combined assets at the end of 2018, according to the company’s annual report.
EU Negotiators Agree On Sustainability Taxonomy, Approval Still Needed
Efama calls for action on corporate reporting given investor disclosure requirements Read more
Large Dutch Metal Schemes Keep Premium, Accrual Unchanged In 2020
PMT and PME announce significant contribution rise for 2021 Read more
AP1 Hit By New Rules Breach As Head Of Equities Agrees To Quit
Swedish national pension fund says Olof Jonasson bought into firms AP1 later invested in Read more
IPE Conference: Pension Funds Find Changing Public Opinion Is Part Of A PE Investors Role
“Locusts” perception of private equity poses challenges for would-be investors Read more
IPE Conference: Long-term Horizon Hailed As Key To Improved Investment Approach
‘The biggest risk is that you will not achieve any returns in the coming decades,’ says Jaap van Dam, 300 Club Read more
UK Roundup: TPR Debt Recovery Rate Low, £40m Missed
KPMG sells UK pensions practice Read more