North American envelope maker purchasing $46M group annuity buy-in

North American envelope marker and marketer Supremex Inc. is purchasing a $46 million group annuity buy-in through RBC Life Insurance Co.

The deal covers 361 defined benefit plan pensioners, beneficiaries and deferred vested members. It comes on the heels of an almost $7 million transaction made in June 2018 for a smaller group of members of one of the company’s different DB plans.

Read: Buy-ins and boomerangs: A look at the trends in Canada’s annuity market

“Annuity buy-ins are part of our ongoing pension risk management strategy,” said Guy Prenevost, chief financial officer of Supremex, in a press release. “In consultation with our actuaries at Eckler [Ltd.], we entered into a group annuity buy-in contract at a very competitive price, in line with our financial objectives.

“We are pleased that our efforts concluded in this transaction, which considerably reduces the risk profile and volatility associated with our defined benefit pension plans and further secures our members’ benefits.”