FTSE 100-listed engineering company Smiths Group has struck a £176m bulk annuity deal with insurer Canada Life.

The transaction covered more than 2,000 pensioners and dependents, according to a statement from the company.

Smiths Group said roughly £800m of the Smiths Industries Pension Scheme’s liabilities had now been insured, and £1.6bn across two schemes.

The latest deal forms part of a long-term de-risking plan for the company. Consultancy group Aon, adviser to the pension schemes, said the series of buy-in deals formed “one of the market’s longest-established programmes of phased de-risking”.

The transaction was “well-timed to capture strong pricing opportunities”, Aon added.

Dominic Grimley, risk settlement adviser at Aon, said: “This transaction followed a period of careful market monitoring, where we waited for the right opportunities to emerge. All parties involved have considerable market experience and this encouraged a swift conclusion once pricing was accessible.”

Smiths Group’s pension funds had £3.8bn in combined assets at the end of 2018, according to the company’s annual report.

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