Sun Life announced Dec. 7 that the insurer secured a $176 million annuity buy-in. The deal is with Corby Spirit and Wine Limited and Hiram Walker & Sons Limited. It closed on May 20, 2020.
Corby's majority shareholder, is a wholly-owned Canadian subsidiary of international spirits and wine company Pernod Ricard S.A., headquartered in Paris, France.
Sun Life says the deal was the largest Canadian de-risking transaction during the first half of 2020. It 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, says Sun Life.
Eckler, an actuarial consulting firm, worked closely with Sun Life to advise Corby and Hiram Walker on the development of the de-risking plan.
"A deal of this size and scale during a global pandemic demonstrates our competitive approach and ability to provide long-term protection for retirees," stated 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."
Melissa James, Vice President, Total Rewards & Organizational Effectiveness, Pernod Ricard North America, stated that the de-risking transaction helps provide financial security for the organization’s retirees and beneficiaries. "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."
