trending Market Intelligence /marketintelligence/en/news-insights/trending/NJWlcQUOmOb3p4H6Obyz2w2 content esgSubNav
In This List

Sun Life Assurance, BMO Insurance make pension annuity buyout


Banking Essentials Newsletter: 7th February Edition


Insurance Underwriting Transformed How Insurers Can Harness Probability of Default Models for Smarter Credit Decisions

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

Sun Life Assurance, BMO Insurance make pension annuity buyout

Loblaw Cos. Ltd., a Canadian conglomerate that includes retail businesses and financial services and insurance operations, has agreed to an annuity buyout transaction with Sun Life Assurance Co. of Canada and BMO Insurance, a unit of BMO Financial Corp.

Under the agreement, the two insurers will assume responsibility for making pension payments to Loblaw's pension members in exchange for a premium from the pension administrator. The Loblaw pension benefits are linked to inflation.

"There are many plans in Canada that provide inflation-linked pensions and we believe there are significant opportunities for these plans to transfer risk at an affordable cost," Brent Simmons, Sun Life's senior managing director of defined benefit solutions, said in a statement.

The transaction was valued at about C$350 million, according to a press release from Willis Towers Watson Plc, which advised Loblaw on the deal.

Sun Life Assurance Co. of Canada is a subsidiary of Sun Life Financial Inc.