Innovative, all-Canadian longevity insurance transaction to help protect long-term viability of Canadian Bank Note pension planTORONTO, Nov. 28, 2016 /CNW/ - Canadian Bank Note Company, Limited, a world leader in the design and manufacturing of anti-counterfeit documents, and The Canada Life Assurance Company, a leading Canadian insurer, today announced an agreement that strengthens the ability of Canadian Bank Note's pension plan's risk management strategy by transferring $35 million of longevity risk associated with just over 200 pensioners, to Canada Life. The transaction is the first streamlined longevity agreement in Canada. Canadians can expect to enjoy longer lives than their parents and grandparents, which can make it challenging for plan sponsors to guarantee their plan members' pension payments throughout their lifetimes. Under this new insurance agreement with Canada Life, Canadian Bank Note maintains full responsibility for the payment of monthly pensions to its pensioners, but the insurer will reimburse the pension plan should pensioners exceed life expectancy. "Canadian Bank Note is invested in the future of our employees, and we are continuously evaluating the risks associated with our pension plans to ensure their long-term viability," says Douglas Arends, Chairman at Canadian Bank Note. "This innovative agreement with Canada Life protects our company and our employees against the rising costs associated with increased longevity." "This is an exciting development since the industry has not really seen many transactions done on this scale," says Neil Duffy, Vice-President, Pension Risk Transfer, Canada Life. "Globally, through our reinsurance division, we have continually demonstrated our ability to write innovative longevity transactions, with one of our recent transactions being as large as €6 billion. When Canadian Bank Note approached us to help solve their longevity risk concern, it gave us the opportunity to build on our ability to innovate by developing a streamlined longevity insurance contract tailored to their needs as a smaller pension plan, opening doors for transactions of all sizes."