Canadian insurer makes splash across the pond

Insurer's European subsidiary announces agreement to acquire Irish company.

Canadian insurer makes splash across the pond
Great-West Lifeco’s European subsidiary, Canada Life, has reached an agreement to acquire Legal & General International (Ireland) Limited (LGII).

"The proposed transaction will enhance the position of Canada Life in the UK, and give clients and professional advisers further confidence in our UK offshore  business," said Paul Mahon, President and Chief Executive Officer of Great-West Lifeco. "Canada Life is a highly regarded offshore bond provider and has been selling into the UK for over 27 years through its offshore companies, based in the Isle of Man and, more recently, also based in Dublin."

LGII is a subsidiary of the Legal & General Group Plc and is based in Dublin. LGII provides investment and tax planning solutions, primarily focused on the UK high net worth market. The company has over 4,000 UK offshore bond policies with assets under administration of $4.74 billion, as at 30 October 2014.

The transaction is expected to close in the second quarter of 2015 and is subject to customary regulatory approvals, including approvals from the European Commission under the EU Merger Regulation, and certain closing conditions.

The transaction will not have a material impact on Great-West Lifeco's financial results.