The Iron Ore Co. of Canada has purchased a $560 million group annuity buy-in that covers more than 3,700 defined benefit plan beneficiaries and current retirees.

The transaction with Sun Life Financial and Morneau Shepell Ltd. represents the largest Canadian same-day deal with a single insurer, according to a press release.

“We continue to see these transactions grow in the Canadian market as companies look for better pension risk management solutions so they can focus on their core business,” said Brent Simmons, senior managing director and head or defined benefit solutions at Sun Life.

Read: Rayonier Advanced Materials pension taking on annuity buyout

“Our unique bid process produced a great outcome for IOC and Sun Life,” added Benoît Labrosse, vice-president at Morneau Shepell asset and risk management. “Our process ensures that insurers can deploy significant resources on an opportunity with the confidence that the plan administrator will transact.”

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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