RBC Insurance to act as lead administrator in $1.5 billion pension risk transfer with IBM Canada

TORONTO, October 31, 2024 — RBC Insurance has been selected to participate in a $1.5 billion pension risk transfer transaction with IBM Canada Ltd. (IBM Canada), the second-largest pension risk transfer ever in the Canadian market. Under the terms of the agreement, RBC Insurance and Brookfield Annuity Company will each insure 25 per cent and 75 per cent, respectively, of the pension benefit payments for each of the approximately 6,000 plan participants and beneficiaries included in the transaction.

RBC Insurance will act as the lead administrator in providing protected retirement income payments to this full population of retirees and their beneficiaries included in the transaction beginning May 1, 2025. Brookfield Annuity will settle the liabilities under its group annuity contract directly with RBC Insurance.

“RBC Insurance is proud to partner with IBM Canada, offering our financial strength, stability and client-focused approach to safeguarding Canadians’ path to a healthy and comfortable retirement,” said Abid Kazmi, Vice President Longevity Solutions, RBC Insurance. “We’re committed to ensuring the retirement income they worked hard to earn is protected.”

RBC Insurance Group Annuity delivers retirement security to defined benefit pension plan members. With a commitment to best-in-class service, RBC Insurance provides plan sponsors with the stability of a risk management solution dedicated to their needs and backed by RBC’s purpose-driven, principles-led approach to delivering leading performance. RBC is the only global systemically important bank operating in the Canadian pension risk transfer market.

About RBC Insurance
RBC Insurance^® offers a wide range of life, health, home, auto, travel, wealth, group benefits, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, Canada’s biggest bank and one of the largest in the world, based on market capitalization. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with 2,700 employees who serve nearly 5 million clients globally.