British Engineering company Smiths Group has agreed a deal to insure GBP207 million of its pension scheme with insurer Canada Life.
The “buy-in bulk annuity agreement” will see Canada Life will take on some of the pension scheme risk, which remains with the company, Reuters report.
“Our sustained focus, over many years, on de-risking the company’s pension liabilities has reduced volatility and has led to significantly lower funding obligations going forward – freeing up capital for Smiths to invest in growth opportunities, – Chief financial officer Bill Seeger said.”
“Over 95% of the group’s total pension liabilities are hedged through our liability driven investment strategy.”
Across Smiths Group’s two main UK schemes about 1.5 billion pounds ($1.97 billion) of liabilities have now been insured, it said.
Smiths Group is the latest of several British companies to announce bulk annuity deals which cut the risk of them struggling to fund their employees’ retirement schemes.
Smith Group employ around 22,000 people in more than 50 countries across our five divisions – John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek. The company said it has been at the forefront of technology for over 160 years and our products and services continue to touch the lives of millions of people every day.