October 2022
Cartwright, the pension and investment specialist for defined benefit and hybrid schemes, and K3 Advisory, the pension market’s only specialist independent bulk annuity and consolidator advisory business, today announced the successful completion of a £25 million buy in for the UK operations of a foreign bank.
The deal, which covered 93 pensioners, completed in March of this year with insurer Canada Life. Administrator and actuary for the scheme was XPS and legal advice was provided by BDB Pitmans (now part of Osborne Clarke).
Adam Davis, Managing Director at K3 Advisory, commented: “This deal represents the third foreign bank transaction we have successfully undertaken since our launch in 2020. In this case, three insurers quoted for the scheme, resulting in epic pricing, well below the scheme’s long term solvency target with no obligation to fund the scheme in the future - a fantastic position to be in. Current market conditions have driven a huge surge in smaller schemes looking to buy out, and our streamlined service with Cartwright is paying real dividends in getting these transactions done very quickly and efficiently.”
Sam Roberts, Director of Investment Consulting at Cartwright commented: “It’s incredibly satisfying to now be in a position with smaller schemes where we are seeing multiple quotes and a truly competitive exercise amongst insurers. This is exactly where the market needed to be. Smaller schemes are no longer being ignored or deemed not ‘worthwhile’ when it comes to these types of exercises. The expertise and experience we continue to build on as a team with K3 ensures we remain best placed in the market to help smaller schemes and continue to secure the very best outcomes for their members.”
The Chair of the Trustees commented: “We were completely confident working with K3 and Cartwright would ensure we were bringing the scheme to market at the optimal time for us and our members. Further to that, their track record and expertise with smaller schemes meant they truly understood our unique needs - giving us the reassurance that we would secure the best terms possible”.
Nick Flynn, Director of Retirement Income at Canada Life, commented: “Canada Life is expertly placed to help smaller schemes achieve their buy-in goals while maintaining an attractive price. It was a pleasure to work with all parties to secure such a positive outcome for the scheme and its members.”
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