Great-West Lifeco Inc. subsidiary, Great-West Life & Annuity Insurance Company (GWL&A) has completed the sale, via reinsurance of all of its individual life insurance and annuity business to Protective Life Insurance Company, a subsidiary of Protective Life Corporation.
The transaction was previously announced on January 24th, 2019 and the business sold includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities and closed block life insurance and annuities.
Under the transaction, GWL&A retains a small block of participating life insurance policies which will be administered by Protective.
Protective notes that the transaction is expected to represent a capital investment by Protective of roughly $1.2 billion, making it the firm’s largest acquisition to date.
Great-West Lifeco explains that the reinsurance transaction with Protective includes business written in the U.S. by GWL&A, Great-West Life & Annuity Insurance Company of New York, and the U.S. branches of GWL&A’s affiliates, The Canada Life Assurance Company and The Great-West Life Assurance Company.
The firm also states that its retirement and investment management operations, Empower Retirement and Great-West Investments, are not affected by this transaction.
Richard Bielen, President and Chief Executive Officer (CEO) of Protective, commented: “We are proud to announce the closing of our 57th acquisition.
“This is an exciting time in Protective’s history. The addition of this seasoned, stable block of business diversifies our product mix, while providing strategic opportunities in the bank distribution channel and competitive positioning in new markets. We look forward to the opportunity to serve more customers.”
Since Protective became part of Dai-ichi Life Holdings, Inc in 2015, this is its fourth acquisition.