The acquisition of American company’s Retirement Plan Services expands giant's U.S. operations.
Manulife Financial Corporation expanded its American operations with the acquisition of New York Life’s Retirement Plan Services (RPS).
The acquisition will increase John Hancock Financial’s RPS assets under administration by approximately 60 per cent, accelerate its expansion into the mid-case to large-case private sector retirement plan markets and add both scale and expertise to John Hancock in a strategically significant line of business.
"Manulife is a major player in the pensions business in Canada, the United States, Hong Kong and Indonesia. This transaction, similar to our recently announced acquisition of Standard Life's Canadian operations, will significantly increase our retirement plans business overall," said Donald Guloien, President and Chief Executive Officer of Manulife. "When completed, these transactions will each accelerate our strategy to grow our wealth and asset management businesses around the world."
In addition, New York Life has agreed to assume, on a reinsurance basis, 60 per cent of certain John Hancock life insurance policies.
The transaction is expected to close in the first half of 2015, subject to regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed.
“As well, exchanging a portion of John Hancock's in-force closed block life insurance policies for New York Life's RPS business redirects capital to a higher growth, less capital intensive, higher return business," said Craig Bromley, President, John Hancock.
The acquisition will increase John Hancock Financial’s RPS assets under administration by approximately 60 per cent, accelerate its expansion into the mid-case to large-case private sector retirement plan markets and add both scale and expertise to John Hancock in a strategically significant line of business.
"Manulife is a major player in the pensions business in Canada, the United States, Hong Kong and Indonesia. This transaction, similar to our recently announced acquisition of Standard Life's Canadian operations, will significantly increase our retirement plans business overall," said Donald Guloien, President and Chief Executive Officer of Manulife. "When completed, these transactions will each accelerate our strategy to grow our wealth and asset management businesses around the world."
In addition, New York Life has agreed to assume, on a reinsurance basis, 60 per cent of certain John Hancock life insurance policies.
The transaction is expected to close in the first half of 2015, subject to regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed.
“As well, exchanging a portion of John Hancock's in-force closed block life insurance policies for New York Life's RPS business redirects capital to a higher growth, less capital intensive, higher return business," said Craig Bromley, President, John Hancock.
