Pensions - Articles - JLT EB completes first bulk annuity deal with Canada Life

 JLT EB secured the £5m pensioner buyout alongside a trivial commutation exercise, following a competitive broking exercise won by Canada Life. Around 150 members were covered by the transaction, which represented an important de-risking step for the Plan trustees.

 Canada Life’s entry into the BPA marketplace will increase competition.

 JLT EB was chosen as a partner of choice by Canada Life to launch into this market thanks to their reputation in the insurance industry for running efficient and effective broking processes with a high deal conversion rate.

 This transaction highlights the ability to integrate risk management exercises, such as trivial commutation or pension increase exchange with a BPA, even for smaller transactions.

 JLT EB’s buyout team has a good track record for facilitating bulk annuity transactions for smaller schemes, having successfully brokered over 20 buy-ins/buyouts with deal value below £5m since 2012, in addition to a number of larger deals.

 Dave Barratt, Senior Buyout Consultant, JLT Employee Benefits, said: “This is a very interesting time for the smaller end of the bulk annuity market. As more insurers enter the market, smaller schemes will have greater access to de-risking transactions.

 “Thanks to our track record in working with insurers, we were able to help Canada Life with its debut in the bulk annuity market.”

 Richard Priestley, Head of Retirement Income, Canada Life, said: “We were delighted to complete our first bulk annuity transaction with JLT Employee Benefits, who was able to run a smooth and efficient broking process for the trustees as well as for us.”