{"id":286763,"date":"2016-01-26T10:40:00","date_gmt":"2016-01-26T15:40:00","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/uncategorized\/sun-life-announces-530-million-group-annuity-deal\/"},"modified":"2016-01-26T10:40:00","modified_gmt":"2016-01-26T15:40:00","slug":"sun-life-announces-530-million-group-annuity-deal","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/industry-news\/sun-life-announces-530-million-group-annuity-deal\/","title":{"rendered":"Sun Life announces $530-million group annuity deal"},"content":{"rendered":"<p> Toronto-based Sun Life Assurance Co. of Canada on Tuesday announced what it says is the largest annuity buy-in deal in Canadian history.<\/p>\n<p> The insurer has entered into an annuity buy-in transaction, valued at approximately $530 million, with two unnamed Canadian pension plan sponsors, according to the firm&#8217;s announcement.<\/p>\n<p> Under the deal, the pension plans pay a lump sum premium to the insurer and Sun Life will make monthly payments to the plans, which will then pay their plan members&#8217; defined benefit pensions directly.<\/p>\n<p> The deal effectively transfers the plans&#8217; investment, longevity and inflation risk to Sun Life, while securing their ability to continue to deliver pension payouts to their plan members.<\/p>\n<p> Sun Life developed the idea for the massive annuity after receiving inquiries from two unrelated inflation-linked pension plans, the announcement says. The insurer combined the annuity purchases for the two plans, which enabled Sun Life to pool the inflation risk and create a more efficient strategy; which, in turn, &#8220;generated significant cost savings&#8221; for the plans, the announcement says.<\/p>\n<p> &#8220;We are thrilled to be transforming the annuity market, creating an innovative solution to help inflation-linked pension plans reduce risk,&#8221; says Brent Simmons, senior managing director, defined benefit solutions, at Sun Life Financial, in a statement. &#8220;This transaction is in response to market demand for affordable solutions for inflation-linked plans. Plan sponsors are looking for creative ways to de-risk and this is just one example of how we can help them meet their objectives and focus on their core business.&#8221;<\/p>\n<p> This sort of combined annuity is appropriate for plans &#8220;with indexing formulas that are related to inflation but are different enough to be complementary.&#8221; the Sun Life announcement says.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The insurer has entered into an annuity buy-in transaction with two unnamed Canadian pension plan sponsors<\/p>\n","protected":false},"author":38954,"featured_media":268409,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2318],"tags":[2602],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/286763"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/38954"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=286763"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/286763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media\/268409"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=286763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=286763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=286763"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=286763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}