Engineering organisation Smiths Group has completed a bulk annuity buy-in transaction with insurer Canada Life.
The buy-in arrangement has been designed to de-risk the pension scheme’s liabilities; to date, approximately £0.8 billion of the Smiths Industries Pension Scheme liabilities have been insured over a series of buy-in agreements. This is the scheme’s second transaction with Canada Life.
Across Smiths Group’s two main UK pension schemes, around £1.6 billion of liabilities have now been insured.
Nicholas Godden, chair of the Smiths Industries Pension Scheme, said: “This is the second buy-in we have completed with Canada Life as part of our long-term de-risking strategy. We have made considerable strides to de-risk the scheme and our aim is to continue to do so in the future.”
John Shipsey, chief financial officer at Smiths Group, added: “Our sustained focus, over many years, on de-risking the group’s pension liabilities has reduced volatility and led to lower funding obligations, freeing up capital for Smiths to invest in growth opportunities.”