Gallagher has today announced the completion of a £47.5m buy-in transaction for an unnamed scheme, in partnership with insurance company Canada Life. The buy-in covers 355 deferred members and 207 pensioner members.
Gallagher acted as broker and project manager for the transaction, working alongside Aon as Scheme Actuary and administrator, Osborne Clarke LLP as legal adviser, and Schroders as investment adviser to the Trustees. Following a competitive tender process involving four interested insurers, Canada Life was selected as the Trustees’ preferred provider for the transaction.
Gallagher worked closely with the Trustees and advisers to ensure the scheme was prepared for the transaction, a process that included addressing salient data issues and refining the overall investment strategy. At an early stage of the transaction, Gallagher helped the Trustees and Sponsor to establish a definitive price objective, which involved regularly tracking pricing alongside a significant financial commitment from the parent company. This ensured the deal was completed to the satisfaction of all parties.
The deal moved at a quick pace, progressing from receipt of initial quotations to deal completion in just over five weeks. This fulfilled a key requirement of the Sponsor.
Mark van den Berghen, Head of Risk Transfer at Gallagher, said:
“Working in tandem with an exceptional range of co-advisers, we’re delighted to have executed a buy-in for the scheme with the team at Canada Life. Our close collaboration, powered by innovation, meant that we could swiftly conclude the transaction. This is a fantastic outcome, and proof of what can be achieved in our industry when we come together. This transaction shows that there continues to be the opportunity for schemes of all sizes to secure excellent pricing and meet Trustees’ objectives.”
Shreyas Sridhar, Business Development Director, Bulk Purchase Annuities at Canada Life said:
“It is fantastic to have partnered with the Trustees on this transaction, which has demonstrated our capability to work with schemes with significant deferred populations. Collaborating with Gallagher as the appointed risk transfer broker ensured a transparent process which was executed in a timely manner, resulting in a good outcome for the client.”
Kevin Wesbroom, Chair of Trustees for the scheme and independent trustee at Capital Cranfield Trustees Limited, said:
“I am delighted we have secured the benefits for all remaining uninsured members of the Scheme with Canada Life. Market movements and a significant injection from the sponsoring employer have made this possible, but getting to this stage was a real team effort. I would like to thank Gallagher for their diligent stewardship and excellent project management, as well as Osborne Clarke and Aon for the significant role they played in the legal and actuarial aspects of the transaction, and Canada Life for their engagement and transparency throughout this process. We are all excited to continue towards the scheme’s long-term objective.”
