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Smiths shifts £207m of liabilities

Smiths shifts £207m of liabilities

Mark Dunne
Monday 23rd October 2017

Technology developer Smiths Group has taken advantage of favourable market conditions to continue de-risking its pension schemes.

The Smiths Industries Pension Scheme insured the policies of more than 2,000 of its members in a £207m buy-in with Canada Life.

The bulk annuity deal, which was agreed in September, is Smiths first with the insurer, but its seventh overall.

The trustees have now de-risked £500m worth of liabilities, a number that rises to £1.5bn when both of Smiths Group’s UK pension schemes are considered.

Transferring risk from Smiths pension schemes to a third party cuts the funding obligation, thus frees-up capital to invest in the business, chief financial officer Bill Seeger said.

Chair of Smiths Industries Pension Scheme trustees Nicholas Godden hinted that there are similar transactions on the way.

“This is the first buy-in we have completed with Canada Life as part of our long-term de-risking strategy,” he said.

“We have made considerable strides to completely de-risk the scheme and this remains our long-term aim.”

This follows deal confirmed last week where plumbers merchant Wolseley agreed a £600m de-risking transaction with Pension Insurance Corporation (PIC).


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