Canada Life completes £100m buy-in with Rathbones pension schemes

by | May 9, 2024

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Canada Life has completed a £100 million bulk purchase annuity buy-in transaction with the trustees of The Rathbone Group 1987 Pension Scheme and the Laurence Keen Retirement Benefits Scheme (the ‘Schemes’). 

Canada Life will insure the defined benefit pension liabilities for around 480 members, removing the investment and longevity risk of these members from the Schemes.  Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.

The transaction was instigated by a joint working group of the Schemes’ Trustees and Rathbones Group Plc, supported with professional advice from Isio (insurance broking), Burges Salmon (legal) and Broadstone (investment and actuarial).

 
 
  • Richard Lanyon, Trustee Chair of the Schemes, said: “It’s fantastic that we’ve made this step to further enhance the security of members’ benefits. The Trustees and Rathbones have been cooperatively involved in the Schemes’ de-risking journey in conjunction with our advisers. Seeing the results of this effort come to fruition is very rewarding.”
  • Iain Hooley, Group Chief Financial Officer of Rathbones Group Plc said: “We are very pleased to have worked closely with the trustees and advisers in fully securing the benefits of all members with a highly respected insurer. The support of Canada Life enhances the security already offered to scheme members and substantially de-risks the Group’s balance sheet. We are grateful to the Schemes’ Trustees and all advisers for their efforts and attention to detail in achieving this outcome.”
  • Natalie Keeble, Business Development Manager of Bulk Purchase Annuities at Canada Life, said: “A truly collaborative approach by all parties involved resulted in a great outcome for the security of members’ benefits and creating good value for the Scheme sponsors. We continue to see very high levels of activity in the market as schemes seek to capitalise on the competitive terms available.”
  • Andrew Cooper, Director at Isio said: “We are delighted to have helped the Trustees secure members’ benefits with Canada Life. By undertaking insurer focussed preparation and achieving strong market engagement, all parties were able to work quickly and collaboratively to reach a great outcome for members, the Schemes and Rathbones.”
  • Michael Hayles, Partner at Burges Salmon said: “We were very pleased to assist the Trustees with the buy-in to secure members’ benefits in full.  The careful preparatory work carried out by the Trustees to review the schemes’ documentation and confirm the benefit structures helped to ensure that the transaction proceeded as quickly and smoothly as possible.” 
  • David Hamilton, Chief Actuary at Broadstone said:  “We are proud to have supported yet another Trustee board through a successful de-risking process.  The collaborative approach and detailed preparation led to a smooth, well-organised transaction, to the benefit of all the parties involved.  We will continue to support the Trustees as they move into this next (low-risk) stage.”

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