Largest Canadian de-risking transaction during initial months
of COVID-19
TORONTO, Dec. 7, 2020 /CNW/ - Amidst volatile markets
caused by the COVID-19 pandemic, Sun Life, in consultation with
Eckler Ltd., secured a $176 million
annuity buy-in – the largest Canadian de-risking transaction in the
first half of 2020. The deal is with Corby Spirit and Wine Limited
("Corby") and Hiram Walker &
Sons Limited ("Hiram Walker"), manufacturers and marketers of
spirits and wines. Hiram Walker,
Corby's majority shareholder, is a wholly-owned Canadian subsidiary
of international spirits and wine company Pernod Ricard S.A., which
is headquartered in Paris,
France.
While some plan sponsors have put de-risking plans on the back
burner due to market conditions and governance hurdles,
Corby and Hiram Walker saw an
opportunity. Sun Life's strong risk management culture and
innovative capabilities helped secure this transaction. This deal
highlights a continuing trend in the Canadian market, as plan
sponsors seek better risk management solutions so they can focus on
their core business.
"A deal of this size and scale during a global pandemic
demonstrates our competitive approach and ability to provide
long-term protection for retirees," says Brent Simmons, Head of Defined Benefit Solutions
at Sun Life. "Despite a volatile market, we planned strategically,
working alongside Eckler, and were able to produce a great outcome
for Corby and Hiram Walker."
"Our people, both current and retired, remain a top priority for
us and this deal helps provide financial security for our retirees
and beneficiaries," said Melissa
James, Vice President, Total Rewards & Organizational
Effectiveness, Pernod Ricard North America. "We were impressed with
Eckler's guidance, as well as the partnership with Sun Life. During
a time that has provided so much uncertainty, we were pleased that
Sun Life and Eckler were able to provide us with some level of
certainty and stability for our retirees."
Actuarial consulting firm, Eckler worked closely with Sun Life
to advise Corby and Hiram Walker on
the development of the de-risking plan. "We are delighted to bring
Sun Life, Corby and Hiram Walker
together to complete this milestone transaction. With it,
Corby and Hiram Walker meet key
business objectives, while protecting their pensioners' benefits,"
said Daniella Vega, Principal,
Eckler Ltd. "It gives real
meaning to Eckler's purpose to work together to help create a
secure future for Canadians."
The deal covers 750 retirees and beneficiaries within
Canada. There will be no change
for members, who will continue to be paid from the plan as before
the transaction. The deal closed on May 20,
2020.
About Sun Life
Sun Life is a leading international
financial services organization providing insurance, wealth and
asset management solutions to individual and corporate 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 September 30, 2020, Sun Life had total assets
under management of $1,186 billion.
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.
Sun Life's Defined Benefit Solutions is a team of experienced
pension and investment professionals, whose mandate is to help
Canadian companies manage the risks of their defined benefit
pension plans. The team works closely with plan sponsors,
consultants and other industry experts to deliver innovative and
customized solutions.
About Corby
Corby Spirit and Wine Limited is a leading
Canadian manufacturer, marketer and distributor of spirits and
imported wines. Corby's portfolio of owned-brands includes some of
the most renowned brands in Canada, including J.P. Wiser's®, Lot 40®, and
Pike Creek® Canadian whiskies, Lamb's® rum, Polar Ice® vodka and
McGuinness® liqueurs, as well as Ungava® gin, Cabot Trail®
maple-based liqueurs and Chic Choc® spiced rum, and Foreign Affair®
wines. Through its affiliation with Pernod Ricard S.A., a global
leader in the spirits and wine industry, Corby also represents
leading international brands such as ABSOLUT® vodka, Chivas Regal®,
The Glenlivet® and Ballantine's® Scotch whiskies, Jameson® Irish
whiskey, Beefeater® gin, Malibu® rum, Kahlúa® liqueur, Mumm®
champagne, and Jacob's Creek®, Wyndham Estate®, Stoneleigh®, Campo
Viejo®, and Kenwood® wines. Corby is a publicly traded company
based in Toronto, Ontario, and is
listed on the Toronto Stock Exchange under the trading symbols
CSW.A and CSW.B. For further information, please visit our
website or follow us on LinkedIn.
About Hiram Walker & Sons
Limited
Established over 160 years ago, Hiram Walker &
Sons Limited's tradition of blending quality ingredients, processes
and highly skilled people continues at the Windsor,
Ontario based production facility. Hiram
Walker produces brands such as J.P. Wiser's, Lot No. 40,
Pike Creek, Gooderham & Worts® and Royal Reserve® Canadian
whiskies, Polar Ice vodka, Malibu® and Lamb's rums, and McGuinness
liqueurs for Canadian distribution by its affiliate, Corby Spirit
and Wine Limited. Hiram Walker & Sons Limited is a
subsidiary of Pernod Ricard S.A.
About Eckler Ltd.
Eckler is Canada's largest
independent actuarial consulting firm. Based in Canada and the Caribbean, we're a team of committed and
highly skilled professionals in the areas of pension, retirement,
financial wellness, investment, group benefits, change management
and communication, along with insurance and technology consulting.
Owned and operated by active Principals, the company has earned a
reputation for service continuity and high professional standards.
Eckler is a founding member of Abelica Global – an international
alliance of independent actuarial and consulting firms operating in
over 20 countries. Visit eckler.ca to learn more.
Note to editors: All figures in Canadian dollars except as
otherwise noted.
Media Relations
Contacts:
Laura
Torchia
Manager, Corporate
Communications
T.
416-540-5918
laura.torchia@sunlife.com
Nancy Lee
Martin
Corporate Marketing &
Communications Manager
T. 416-696-4086
nlmartin@eckler.ca
Valerie
Brive-Turtle
Director, Communications,
PR & SR
T. 416-479-2492
Valerie.brive-turtle@pernod-ricard.com
SOURCE Sun Life Financial Inc.