Canada Life has completed its third pension scheme buy-in with drinks manufacturer A.G. Barr p.l.c., covering £41 million and safeguarding future benefits for 300 members of the company’s defined benefit scheme.
The arrangement includes 160 deferred members and 140 pensioners under the A.G. Barr (2008) Pension and Life Assurance Scheme.
This final buy-in concludes a de-risking program that started nearly a decade ago. Previous buy-ins in 2016 and 2018 had already secured roughly 40% of the scheme's liabilities. By completing the transaction, the scheme has now fully insured the benefits of all members covered under the buy-in arrangements, transferring longevity, investment and interest rate risks to Canada Life.
The Trustee board worked with Hymans Robertson for brokerage, actuarial, and administration services, alongside its ongoing role as de-risking adviser. Legal guidance was provided by Shepherd and Wedderburn LLP, while Canada Life used its in-house legal team.
Shreyas Sridhar, managing director for bulk purchase annuities at Canada Life, highlighted the value of the long-term partnership. He said the team's in-depth understanding of the scheme allowed for a smooth process and that close monitoring of market conditions enabled swift action when pricing was favorable.
Sridhar also noted that the collaboration across all parties helped deliver a strong outcome for scheme members.
Hymans Robertson’s lead adviser, Mahad Farooqui, described the buy-in as “a significant milestone” in the scheme’s journey toward full benefit security.
Amanda Switzer, partner at Hymans and the scheme’s actuary, added that the transaction marks “an incredible milestone” for the Trustee, Canada Life, and the members whose benefits are now fully protected.
This deal is part of a growing trend in the UK pension market, where corporates are increasingly using bulk annuity buy-ins and buy-outs to de-risk defined benefit schemes. By locking in market pricing while conditions are favourable, companies like A.G. Barr are able to secure members’ benefits, reduce balance sheet volatility, and remove long-term pension liabilities.
A.G. Barr, known for brands such as IRN-BRU, Rubicon, FUNKIN, and Boost, now completes a decade-long effort to secure its employees’ pension benefits, providing full protection to all members covered by the buy-ins.
