Investment - Articles - Aon advise Smiths Industries on Canada Life annuity deal


Aon has advised the Smiths Group pension schemes on their tenth bulk annuity purchase.

 The £3 billion Smiths Industries Pension Scheme has secured a new £146 million bulk annuity (the fourth in total for the scheme) with Canada Life, after the auction process was redesigned to accommodate the post-COVID-19 market conditions. The transaction took advantage of strong pricing in a turbulent year for markets, with the annuity further improving the security of members' benefits. The trustees and sponsor were advised by Aon, using its Compass bulk annuity platform. Redington advised on the investment aspects of the transaction.

 This transaction for the Smiths Industries Pension Scheme follows the recent announcement of a £142 million buy-in for Smiths Group’s other major UK scheme, the TI Group Pension Scheme.

 Across the Smiths Group’s two UK schemes, approximately 71% of pensioner liabilities are now de-risked through 10 bulk annuities advised on by Aon.

 Nicholas Godden, Chair of the Trustee of the Smiths Industries Pension Scheme, said:This is another well-timed step in our de-risking strategy, adding further to member protection despite a challenging market environment. Thanks to our advisers and to the Group's continued support, the scheme is well positioned for the steps to come."

 Nick Flynn, Annuity Sales Director at Canada Life said:In these times of global uncertainty it is very positive for the scheme members that we can provide certainty as we further develop our relationship with the Smiths Industries Pension Scheme through this buy-in.”
 
 Dominic Grimley, Risk Settlement adviser at Aon, said:Through extra planning, this transaction was designed to fit the circumstances we face in lockdown. This meant the focus was firmly on straightforward execution and price capture, while opportune timing also enabled a gain to be made against the scheme's funding target."
  

Back to Index


Similar News to this Story

Inheritance Tax raises almost GBP6 billion in 8 months
December’s update from HMRC shows that Inheritance Tax (IHT) receipts reached £5.7 billion through the first two-thirds of this financial year (April
PIC completes first Mosaic buyin with GCB Pension Fund
Pension Insurance Corporation plc (“PIC”) has concluded its first full scheme buy-in within Mosaic, PIC’s streamlined service for pension schemes with
Airways Pension Scheme complete longevity hedge with MetLife
The Trustees of the Airways Pension Scheme (“the Scheme”), Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, Inc., (“MetLife”) and Z

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.