On the go: The engineering company has secured a £146m bulk annuity deal with Canada Life for the Smiths Industries Pension Scheme.
The deal, which insured the benefits of 1,000 pensioners, is the fourth in total for the scheme, with assets worth £3bn.
According to Aon, which advised the trustees and sponsor, the transaction “took advantage of strong pricing in a turbulent year for markets”. Redington advised on the investment aspects of the deal.
This buy-in follows the recent announcement of a £142m bulk annuity deal for Smiths Group’s other major UK scheme, the TI Group Pension Scheme with Aviva.
Across the Smiths Group’s two UK schemes, approximately 71 per of pensioner liabilities are now derisked through 10 bulk annuities transactions, Aon stated.
According to Nicholas Godden, chair of the trustee of the Smiths Industries Pension Scheme, the latest transaction “is another well-timed step in our derisking 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,” he added.
