(Figures in U.S. dollars unless noted)
TORONTO Nov 30 Great-West Lifeco Inc (GWO.TO)
said on Thursday that its U.S. insurance unit will buy the
401(k) defined-contribution retirement plan business from a
unit of U.S. Bancorp (USB.N), as it strives to become a top
player among U.S. retirement plan providers.
Great-West said its Denver-based Great West Life & Annuity
Insurance Co. subsidiary will acquire nearly 195,000 plan
participants and more than $9 billion in retirement plan assets
from U.S. Bank Institutional Trust & Custody, and will keep the
U.S. Bank staff.
With the transaction, Great-West said it will provide
products and services to about 21,000 retirement plans,
representing nearly 3.5 million participants in the United
States and more than $104 billion in assets.
Financial terms were not disclosed. The deal is expected to
close in late December, U.S. Bank said in a separate press
The sale of the retirement business will allow U.S. Bank to
focus on businesses where it has significant scale or growth
opportunities, it said, noting that 2 million to 3 million plan
participants are needed in that business.
It marks the second U.S. retirement plan deal for Great
West in recent months. In early October, it bought several
parts of Metropolitan Life Insurance Co.'s small and midsize
401(k) and some defined-benefit plan business, adding about
300,000 participants and $7.5 billion in plan assets in that
Great-West is majority owned by Montreal-based Power
Financial Corp. (PWF.TO).