Smiths Group pension schemes have completed their seventh bulk annuity transaction with Aon.

Earlier in September this year the Smiths Industries Pension Scheme secured a new £207m bulk annuity with Canada Life; timed to capture this year's optimum pricing. Trustees were advised by Aon Hewitt using its Compass bulk annuity platform.

Aon Hewitt has now completed seven bulk annuities with the sponsor's two schemes totalling around £1.5bn as part of a phased de-risking strategy. The deal is part of a larger framework with the employer and trustee.

The new annuity deal improved return on scheme assets as well as reducing risk. This transaction was the scheme's first with Canada Life.

Smiths Industries Pension Scheme chair of the trustee Nicholas Godden said: "This is the first buy-in we have completed with Canada Life as part of our long-term de-risking strategy. We have made considerable strides to completely de-risk the scheme and this remains our long-term aim."

Canada Life executive director Richard Priestley added: "Working intensively with Aon Hewitt and the Smiths Industries Pension Scheme, we helped deliver, at speed, a competitive price which allowed the scheme to complete the transaction within weeks from selecting their chosen insurer. The deal further cements our progression into medium-sized deals and overall commitment to the bulk annuity market."

Aon Hewitt risk settlement adviser Dominic Grimley said:"The Smiths Industries Pension Scheme trustees and manager reacted quickly to market opportunities, allowing us to conclude broking within a few weeks of initial quotations and then to secure terms as favourable as we have seen for some years. Canada Life was able to access attractive assets and reflect them appropriately in their pricing - under time pressure - to deliver the leading bid."

Share Story: