TORONTO, Feb. 21,
2024 /CNW/ - WTW (NASDAQ: WTW), a leading global
advisory, broking, and solutions company, in collaboration with RBC
Insurance, Sun Life and Desjardins Group, today announced a group
annuity buy-out transaction of CA$923 million for over 2,700
members of the Ford of Canada Retirement Pension Plan Number 3 who
retired on or prior to June 1,
2021.
Marco Dickner, Canadian
Retirement Risk Management Leader at WTW, said, "This transaction
is part of a growing trend in the private sector, where plan
sponsors can protect pension benefits for plan members and
eliminate risk for the companies."
Nadine Orr, Head of Group Annuity
at RBC Insurance, said
"RBC Insurance is proud to be acting as the lead insurer in this
important three-way partnership with Sun Life and Desjardins. This
solution shows that the market continues to be able to support
large transactions in a single day to meet the needs of plan
sponsors, while signaling the confidence they have in our ability
to ensure a seamless transition."
Brent Simmons, Head of Defined
Benefit Solutions at Sun Life, added "The Ford transaction
demonstrates the ability of insurers in the Canadian annuity
marketplace to collaborate on insurance solutions that provide
increased benefit security and peace of mind for annuitants."
"Desjardins is pleased with this new partnership with Ford of
Canada, in collaboration with RBC
Insurance and Sun Life, which will reduce certain risks related to
their group retirement plan and provide a stable and solid
financial future for plan members" said Marie-France Amyot, Senior Vice-President
Insurance and Group Savings Division, Desjardins Group.
WTW estimates that up to 88% of Canadian private sector defined
benefit pension plan liabilities remain available to be secured by
annuity transactions. Plan sponsors are expected to continue to
take advantage of this risk transfer opportunity as many Canadian
pension plans are well-funded, and rising interest rates have
improved annuity pricing.
Under an annuity buy-out, an insurance company assumes
responsibility for making pension payments to plan members in
exchange for a premium from the pension plan sponsor.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led
solutions in the areas of people, risk and capital. Leveraging the
global view and local expertise of our colleagues serving 140
countries and markets, we help organizations sharpen their
strategy, enhance organizational resilience, motivate their
workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover
opportunities for sustainable success—and provide perspective that
moves you.
Learn more at wtwco.com.
About RBC Insurance
RBC Insurance® offers a wide range of life, health,
home, auto, travel, wealth, annuities and reinsurance advice and
solutions, as well as creditor and business insurance services to
individual, business and group clients. RBC Insurance is the brand
name for the insurance operating entities of Royal Bank of
Canada, Canada's biggest bank and one of the largest
in the world, based on market capitalization. Its brand is built on
trust, strength, stability and continual success, and it has
consistently been awarded strong credit ratings by A.M. Best and
S&P Global. RBC Insurance is among the largest Canadian
bank-owned insurance organizations, with 2,700 employees who serve
4.8 million clients globally.
RBC Insurance Group Annuity delivers retirement security to
defined benefit pension plan members. With a commitment to
best-in-class service, RBC Insurance provides plan sponsors with
the stability of a risk management solution dedicated to their
needs and backed by RBC's purpose-driven, principles-led approach
to delivering leading performance.
About Sun Life
Sun Life is a leading international financial services
organization providing asset management, wealth, insurance and
health solutions to individual and institutional Clients. Sun Life
has operations in a number of markets worldwide, including
Canada, the United States, the United Kingdom, Ireland, Hong
Kong, the Philippines,
Japan, Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2023, Sun
Life had total assets under management of $1.40 trillion. For more information, please
visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
Note to editors: All figures in Canadian dollars.
About Desjardins Group
Desjardins Group is the largest cooperative financial group in
North America and the fifth
largest in the world, with assets of $414.1
billion as at September 30,
2023. It was named one of the World's Top Companies for
Women by Forbes magazine. To meet the diverse needs of its members
and clients, Desjardins offers a full range of products and
services to individuals and businesses through its extensive
distribution network, its online platforms, and its subsidiaries
across Canada. Ranked among the
world's strongest banks according to The Banker magazine,
Desjardins has one of the highest capital ratios and one of the
highest credit ratings in the industry.
SOURCE WTW