Canada Life UK has completed a £330 mn full-scheme buy-in with the Comet Pension Scheme, locking in future benefits for around 4,500 members.
The transaction places long-term security behind the scheme’s liabilities and marks a major derisking step for the sponsor.
The Comet Pension Scheme is sponsored by a group within Fnac Darty, one of Europe’s large omnichannel retailers of electronics, appliances, and cultural and leisure goods.
The scheme dates back to 2004, when Comet separated from Kingfisher, and later moved under Fnac Darty ownership in 2016.
Fnac Darty appointed LCP as lead risk transfer adviser and broker, while XPS acted as risk transfer adviser to the trustee. All parties worked alongside Canada Life UK to structure a buy-in that matched the funding position and objectives of both the trustee and the sponsor.
XPS continues as the scheme’s actuary and administrator. Legal advice came from Eversheds Sutherland for the trustee, Macfarlanes for Fnac Darty, and CMS for Canada Life UK.
Shreyas Sridhar, managing director for bulk purchase annuities at Canada Life UK, said the insurer was pleased to have been chosen as derisking partner by the trustees and Fnac Darty.
He said the transaction reflects confidence in Canada Life UK and its parent group, Great-West Lifeco, to deliver consistent outcomes for members.
Canada Life UK has been selected by the Comet Pension Scheme Trustees and Fnac Darty as the Scheme’s pensions derisking partner, and I thank them for the full confidence they have in the strength and expertise of Canada Life UK and our global parent Great West-Lifeco to deliver a gold standard customer experience for their members.
Shreyas Sridhar, Managing Director, Bulk Purchase Annuities at Canada Life UK
“This transaction is a great demonstration of what can be achieved through collaboration, and how focused planning by all the parties involved can deliver positive long-term benefits for scheme members,” Shreyas Sridhar says.
Sridhar added that the deal shows what careful coordination can achieve when all sides plan with a long-term view, with members ultimately benefiting from the structure put in place.
Ian Edwards, chair of the scheme trustees, said the trustee welcomed the conclusion of a joint process with the sponsor. He said the improved funding position allowed the scheme to complete the buy-in and secure benefits over the long term with Canada Life.
“The Trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long term security for our members’ benefits,” Ian Edwards, Chair of the Scheme Trustees, said.
Jean-Brieuc Le-Tinier, chief financial officer of Fnac Darty, said the agreement fits the group’s longer-term financial approach. He noted that the risk was addressed without drawing on group cash and that members’ benefits were secured with a well-established insurer under supportive market conditions.
Charlie Finch, partner at LCP and lead adviser on the deal, said the transaction delivers cost certainty for Fnac Darty and lasting security for former Comet employees. He described the process as highly competitive, a pattern he said has been common heading into year-end and is likely to persist, creating further opportunities for sponsors to reduce defined benefit pension risk.
