Great-West Financial to gain approximately 1.9 million participants and
US$167 billion in plan assets via transaction
TSX:GWO
WINNIPEG, April 3, 2014 /CNW/ - Great-West Lifeco Inc. today announced
that its U.S. subsidiary Great-West Financial® has reached an agreement to acquire the J.P. Morgan Retirement Plan
Services large-market recordkeeping business. Upon completion of the
acquisition, Great-West Financial will become the second-largest
retirement services provider by participants in the U.S. defined
contribution market, with nearly 6.8 million participants and US$387
billion in recordkeeping assets. Terms of the transaction were not
disclosed.
The J.P. Morgan Retirement Plan Services business comprises 200 clients
with approximately 1.9 million participants and US$167 billion in
retirement plan assets. As part of the transaction more than 1,000
staff and management affiliated with J.P. Morgan Retirement Plan
Services will join Great-West Financial.
The transaction is scheduled to close in the third quarter of 2014,
subject to regulatory approval in the U.S.
"This acquisition is consistent with Great-West Lifeco's global business
strategy of developing significant market positions in the sectors
where we participate," said Paul Mahon, President and Chief Executive
Officer of Great-West Lifeco. "It further enhances our position as a
leading retirement plan provider in the United States."
"J.P. Morgan large market clients will transition to the Great-West
Financial platform with their current client service teams intact,
which will be of significant benefit," Mahon said.
As part of this expanded emphasis on U.S. market opportunities,
Great-West Lifeco announced in March that it appointed Robert L.
Reynolds as President and Chief Executive Officer of Great-West Lifeco
U.S. Inc., which owns Great-West Financial and Putnam Investments.
Great-West Lifeco also announced that it will integrate Putnam
Investments' retirement business into that of Great-West Financial.
"Uniting the three retirement businesses under Great-West Financial
further strengthens our ability to provide the U.S. marketplace with a
superior, leading-edge offering across every client segment," Reynolds
said.
While this transaction will not have an immediate material impact on the
financial results, it will increase the competitive position of
Great-West Financial.
For more information, please refer to a presentation on the acquisition
posted on Great-West Lifeco's website at www.greatwestlifeco.com/008/home/eventsandpresentations/index.htm.
About Great-West Financial
Great-West Financial® is a registered mark of Great-West Life & Annuity Insurance Company.
Headquartered in metro Denver, Great-West Financial administers
US$243.5 billion in assets for its 5.4 million retirement, insurance
and annuity customers.
Great-West Financial is the nation's second largest underwriter of life
insurance sold through banks (BISRA Life Report, FourthQuarter 2013, based on total premiums at Dec. 31 2013) and
fourth-largest retirement plan record keeper (Pensions & Investments, March 2014, based on total participant accounts at Sept. 30, 2013). It
is an indirect, wholly owned subsidiary of Great-West Lifeco Inc. and "A Member of the Power Financial Corporation Group of Companies" ®.
Great-West Financial® refers to products and services provided by Great-West Life & Annuity
Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village,
CO, its subsidiaries and affiliates. Recordkeeping information and
rankings reflect all recordkeeping customers of GWL&A subsidiary
FASCore, LLC: those of institutional partners, third-party
administrator clients and Great-West Financial. The trademarks, logos,
and registered marks used are owned by GWL&A.
About Great-West Lifeco
Great-West Lifeco Inc. (TSX:GWO) is an international financial services
holding company with interests in life insurance, health insurance,
retirement and investment services, asset management and reinsurance
businesses. Great-West Lifeco has operations in Canada, the United
States, Europe and Asia through Great-West Life, London Life, Canada
Life, Irish Life, Great-West Financial and Putnam Investments.
Great-West Lifeco and its companies have $758 billion* in consolidated
assets under administration and are members of the Power Financial
Corporation group of companies.
* Assets as of December 31, 2013
SOURCE Great-West Lifeco Inc.
