Largest same-day single insurer group annuity in Canadian
history
TORONTO, Jan. 16, 2020 /CNW/ - Morneau Shepell, a leader in pension risk
management in Canada, advised Iron
Ore Company of Canada ("IOC"), a
majority owned subsidiary of Rio Tinto, in its capacity as Plan
administrator of its pension plan, on the execution of a buy-in
group annuity purchase with Sun Life.
The deal, valued at more than CAD $560
million covers more than 3,700 retirees and beneficiaries,
helps reduce risks associated with the pension plan and secures the
plan's strong financial position. Sun Life was awarded the buy-in
group annuity contract following a thorough due diligence process.
This transaction represents the largest same-day transaction in the
Canadian market to be placed with a single insurer. There will be
no change for members, who will continue to be paid from the plan
as before the transaction.
Morneau Shepell worked closely
with IOC on the development of the de-risking plan aimed at
producing a favorable outcome for all plan members and the plan
sponsor. "Our unique bid process produced a great outcome for IOC
and Sun Life," says Benoît Labrosse, vice president, Morneau
Shepell Asset & Risk Management. "Our process ensures that
insurers can deploy significant resources on an opportunity with
the confidence that the Plan administrator will transact."
"A transaction of this size and scale demonstrates Sun Life's
unique ability to help Canadian employers reduce their pension risk
and provide long-term protection for their retirees," says
Brent Simmons, Senior Managing
Director & Head, Defined Benefit Solutions, Sun Life. "We were
thrilled to work with IOC and Morneau Shepell to create such a
meaningful and historic transaction. We continue to see these
transactions grow in the Canadian market as companies look for
better pension risk management solutions so they can focus on their
core business."
About Morneau Shepell
Morneau Shepell is the leading
provider of technology-enabled HR services that delivers an
integrated approach to well-being through our cloud-based platform.
Our focus is providing everything our clients need to support the
mental, physical, social and financial well-being of their people.
By improving lives, we improve business. Our approach spans
services in employee and family assistance, health and wellness,
recognition, pension and benefits administration, retirement and
benefits consulting and actuarial and investment services.
Morneau Shepell employs
approximately 6,000 employees who work with some 24,000 client
organizations that use our services in 162 countries. Morneau Shepell is a publicly traded company on
the Toronto Stock Exchange (TSX: MSI). For more information, visit
morneaushepell.com.
Morneau Shepell's Asset and Risk
Management practice, part of the Retirement Solutions line of
business, has been providing investment consulting services to
clients for more than 30 years, spanning investment strategy, asset
allocation, investment manager selection and performance
monitoring. Through the Asset and Risk Management practice, the
company has also become an industry leader in pension risk
management and pension risk transfer consulting.
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, 2019, Sun Life had total assets
under management of $1,063 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 IOC
IOC is a major North American producer and supplier of premium
iron ore pellets and high-grade concentrate. IOC operates a mine, a
concentrator and a pellet plant in Labrador City, in the province of Newfoundland and Labrador. IOC also operates a fully-owned
418-km-long railway, the QNS&L railway, which links the
company's Labrador operations to
its port terminal in Sept-Iles.
Note to Editors: All figures in Canadian dollars except as
otherwise noted.
SOURCE Morneau Shepell -
Corporate