Protective Life Corporation, a wholly owned US subsidiary of Dai-ichi Life, has agreed to purchase via reinsurance all of Great-West Life & Annuity Insurance Company’s (GWL&A) individual life insurance and annuity business for $1.2bn.
The transaction will be carried out by Protective Life’s subsidiaries Protective Life Insurance Company, and Protective Life & Annuity Insurance Company.
The portfolio of business being acquired includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities, and a portion of Great-West’s closed block life insurance and annuities.
Following completion of the transaction, GWL&A will retain a block of participating policies that will be managed by Protective Life.
The proposed transaction will pave ways for Protective to foray into the executive benefits market.
Protective Life Corporation president and CEO Richard Bielen 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.
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“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 proposed deal would be Protective’s 57th acquisition and its 50th life and annuity acquisition.
Subject to receipt of regulatory approvals, the transactions is scheduled to be completed during the first half of 2019.