All pensioner and deferred members covered in the complete buy-in deal
The Roadchef Retirement Benefits Scheme has finalized a £24 million full scheme buy-in deal with Canada Life.
The transaction, concluded in July 2023, covered all 547 members, both pensioners and those with deferred benefits, within the scheme. This marks Canada Life's second complete scheme buy-in, building on its earlier collaboration with an undisclosed scheme last month.
"We are really pleased to have completed the full scheme buy-in transaction for Roadchef, our second transaction in the deferred market,” said Tim Coulson, managing director of bulk purchase annuities at Canada Life. “Working closely alongside LCP, Roadchef and the trustees of the scheme, we're delighted to have secured 547 members' benefits.”
"We will continue to develop our capability in this exciting and growing market to participate in the broadest range of opportunities possible," he said.
The process was facilitated by Lane Clark & Peacock (LCP), who spearheaded the transaction using their buy-in and buyout service. Legal guidance was provided by Gowling WLG. In addition, EY lent advisory support to Roadchef throughout the negotiations, whereas Canada Life received guidance from Eversheds during the entire process.
"I have used LCP's streamlined buy-in service many times, and I am confident this process maximized insurer engagement for the Roadchef scheme and led to us achieving both very competitive pricing and contract terms despite the extremely busy marketplace. I look forward to working with our long-established LCP administration team and the team at Canada Life to now progress matters," said Mark Fletcher, trustee chair.
James Muirhead, chief financial officer of the Roadchef group, deemed the deal a "great outcome" for both the scheme and its members. "LCP's streamlined approach led to a competitive process between multiple insurers and has helped deliver the long-standing goal for the scheme at an affordable price."
"I am delighted that LCP's streamlined process continues to achieve such strong traction with insurers,” said Catherine Hopper, LCP partner. “Though many commentators are saying you need to go exclusive to market for this size transaction, we had multiple insurers quoting, which has delivered a great outcome for Roadchef and its members.” "With Canada Life now onboard for full scheme as well as pensioner transactions, it means that even the smallest of schemes can receive strong insurer engagement and attractive terms through LCP's streamlined service, as was the case for the Roadchef scheme," she said.
