Repeat buyers can structure “jumbo” deals piece by piece.
Life’s brighter under the sun
© Sun Life Assurance Company of Canada. All rights reserved.
Pension benefits insured for over 37K Canadians – 200K+ since 2017.
Sun Life made over $1.25B in annual pension payments to more than 125K Canadians.1
Around 140 DB plan sponsors purchased group annuities.2
The Canadian group annuity market is supporting transactions of all sizes – from less than $15K to larger than $700M in 2023.
More than 20 repeat buyers transacted.
Repeat buyers can structure “jumbo” deals piece by piece.
Sun Life led the group annuity market in 2023 – that’s 16 years in a row!3
Evolution of the Canadian group annuity market4
Consultants are critical to the success of the group annuity market.
Funded statuses are up 3% for the year to 116%, but saw a 9% decline in Q4.5
Circumstances can change quickly. Group annuities help reduce volatility and lock-in strong funded positions.
Over $2.4B in transactions since 2021, including $925M+ in 2023 alone. Another record year!
Inflation-linked annuity market volume
On average, plan sponsors transacted 1% to 3% cheaper than their longevity-adjusted solvency liability in 20236 – very favourable outcomes!
Transaction dynamics can enhance annuity pricing
Data & longevity profile of plan members
Assets available to insurers
Market competitiveness
Transaction’s structure and specifications
Potential deals in discussion for 2024 – not all are expected to transact this year.
Regulatory changes may drive additional demand for de-risking.
- Nadia Ivanova, Montreal Port Authority (MPA)
Safeguard your resources and focus on your core business in 2024.
Group annuities are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies. Results and information in this infographic are based on Sun Life estimates unless otherwise noted.
Sources & notes:
1Includes only buy-in, buy-out and longevity insurance contracts.
2WTW Group Annuity Market Pulse – Fourth Quarter 2023
3The Secure Retirement Institute Canadian Pension Market report published by LIMRA, March 12, 2024.
4Average annuity proxy rate over the year is calculated by taking the average of daily annuity purchase rates within the year. The daily annuity purchase rate is calculated using the applicable medium duration annuity proxy spread, published by the CIA, and CANSIM V39062 yield.
5Mercer Pension Health Pulse published January 2, 2024.
6Pricing statistics are Sun Life estimates and based only on transactions that Sun Life quoted on. The longevity-adjusted solvency liability is calculated by using industry expectations to adjust a plan’s solvency liability to reflect the sub or super standard mortality of its population.