The Smiths Industries Pension Scheme has completed a £176m bulk annuity buy-in with Canada Life.

The buy-in is the Smiths Group’s eighth bulk annuity purchase, totalling around £1.6bn across the sponsor’s two schemes, and its second with Canada Life.

Aon advised the firm on the deal, as it did with the previous eight, which took place in 2016 and 2017.

The scheme has been on a programme of phased de-risking, in an attempt to improving the return on pension assets while reducing risk.

Commenting on the announcement, Smiths Industries Pension Scheme chair of the trustee, Nicholas Godden, said: "This is another key stride in our de-risking strategy, taking advantage of the strong backing of counter-parties like Canada Life, and thanks to our advisers and the Group's continued support."

Aon risk settlement adviser, Dominic Grimley, added: "This transaction followed a period of careful market monitoring, where we waited for the right opportunities to emerge.

“All parties involved have considerable market experience and this encouraged a swift conclusion once pricing was accessible."

The deal comes during a record period for buy-ins and buyouts, with LCP predicting that transactions will top £15bn in H1 2019, doubling the volumes from the same time last year.

It anticipated that 2019 in on track for exceeding £30bn for the full year.

The Rolls-Royce UK Pension Fund and Legal & General completed the largest bulk annuity deal ever conducted, with a partial buyout worth £4.6bn, earlier this year.

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