In a deal that netted Great-West Lifeco Inc. $1.2 billion, the insurer agreed to sell its U.S. individual life insurance and annuity business to Dai-ichi Life Holdings Inc.’s Protective Life Corp.Great-West Lifeco Inc. agreed to sell its U.S. individual life insurance and annuity business to Dai-ichi Life Holdings Inc.’s Protective Life Corp. in a deal valued at C$1.6 billion ($1.2 billion).
The transaction value includes a capital release of about $400 million, the Winnipeg, Manitoba-based insurer said Thursday in a statement. Great-West expects a book-value loss of $70 million, and $57 million of transaction costs. The business transferred includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities and closed block life insurance and annuities.
“This transaction allows us to focus on the retirement and asset-management markets in the U.S.,” Great-West Lifeco Chief Executive Officer Paul Mahon said in the statement. “With the strengthened capital position resulting from this transaction, we will also consider other capital-management activities, including potential share repurchases, to mitigate the earnings impact from the sale.”Bloomberg