Smiths Group completes second pension buy-in with Canada Life

The FTSE 100 company said the buy-in policy covered liabilities totalling £176m relating to more than 2,000 legacy scheme pensioners and dependants.

It said it was the scheme's second such policy with Canada Life.

“This is the second buy-in we have completed with Canada Life as part of our long-term de-risking strategy,” said Nicholas Godden, chair of the Smiths Industries Pension Scheme Trustee.

“We have made considerable strides to de-risk the Scheme and our aim is to continue to do so in the future.”

Through a series of buy-ins, around £0.8bn of the Smiths Industries Pension Scheme liabilities had now been insured.

Across the company's two main UK schemes, around £1.6bn of the liabilities were now insured.

“Our sustained focus, over many years, on de-risking the group's pension liabilities has reduced volatility and led to lower funding obligations - freeing up capital for Smiths to invest in growth opportunities,” said chief financial officer John Shipsey.