Subsidiaries of Protective Life Corporation (Protective) are set to acquire, via reinsurance, substantially all of the individual life insurance and annuity business of Great-West Life & Annuity Insurance Company (GWL&A).
The agreement sees Protective subsidiaries, Protective Life Insurance Company, and Protective Life & Annuity Insurance Company, acquire the business through reinsurance, and, the transaction represents an estimated capital investment by Protective of roughly $1.2 billion.
This is set to be the largest acquisition in the company’s history, and also signals Protective’s entry into the executive benefits market. Once the deal has closed, which is expected in the first-half of 2019, it will be Protective’s 57th acquisition and its 50th life and annuity acquisition.
Protective, which is part of Dai-ichi Life Holdings, Inc after being acquired by the firm in 2015, has now completed four acquisitions since being part of Dai-ichi.
Richard Bielen, President and Chief Executive Officer (CEO) of Protective, said: “This business aligns well with our long-term plans for growth and scale. The life and annuity business has been a cornerstone of Protective throughout our history and will continue to be an area of future growth for the company.
“Together, Great-West and Protective bring strength and stability to this transaction with a shared focus on serving people and doing the right thing – for our employees, our distributors, and most importantly, our customers. We are excited about the opportunity to reach new markets and provide valued protection to even more customers.”
The business that is to be transferred, which an announcement explains has been marketed under the Great-West Financial brand, includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities, and also a portion of Great-West’s closed block life insurance and annuities. GWL&A will reportedly retain a block of participating policies, which will then be administered by Protective.
Robert Reynolds, GWL&A CEO, commented: “The combined strength of the businesses built by Great-West and Protective creates new opportunities for our customers who will now be very well served by Protective.
“Our team is committed to ensuring a seamless transition to Protective for our customers who will continue to benefit from the product solutions we’ve developed to meet their needs.”
Furthermore, details reveal that the transaction includes business written by GWL&A, Great-West Life & Annuity Insurance Company of New York, and the U.S. offices of GWL&A’s affiliates, The Canada Life Assurance Company, and The Great-West Life Assurance Company. GWL&A’s retirement and investment management units, Empower Retirement and Great-West Investments, are not affected by this transaction.