The Dai-ichi Life headquarters building in Tokyo. (Photo: Akio Kon/BB)
A Japanese life insurer is acquiring aÂ Canadian life insurerâ€™s U.S. individual life and annuity business.
Protective Life Corp., a U.S.-based subsidiary of Dai-ichi Life Holdings Inc. of Tokyo, has agreed to acquire most of the U.S. individual life and annuity business of Great-West Lifeco Inc. through a reinsurance arrangement.
The deal has a value of about $1.2 billion, in U.S. dollars, according to Protective Life and Great-West.
(Related:Â Lincoln Financial Agrees to Acquire Liberty Mutual Life Unit)
Great-West says the businesses being transferredÂ reportedÂ $95 million in net earnings during the first three quarters of 2018, meaning that the dealÂ value amounts to about 9.7 times annual earnings.
Protective Life and Great-West hope toÂ complete the deal by June 30.
Dai-ichi Life acquired Protective Life in 2015, and this is the fourth major deal Protective Life has announced since that deal closed.
Protective Life is making the new reinsurance deal with Great-West Lifecoâ€™sÂ Great-West Life & Annuity Insurance Company unit, which is based in Greenwood Village, Colorado.
Great-West Life & Annuity Insurance Company and three affiliatesÂ â€”Â Great-West Life &Â Annuity Insurance Company of New York the U.S. branch of The Canada Life Assurance Company and the U.S. branch of The Great-West Life Assurance Company â€” intend to entrust Protective Life with:
Protective Life would also administer a block of participating policies that would stay on Great-West Life & Annuityâ€™s books.
Great-West Lifeco would keep:
Paul Mahon, Great-West Lifecoâ€™s president, said in a statement that his company wants toÂ focus on the retirement and asset management markets in the United States.
Richard Bielen, Protective Lifeâ€™s president, said in a statement of his own that his company made the deal because it wants to get bigger.
â€śThe life and annuity business has been a cornerstone of Protective throughout our history and will continue to be an area of future growth for the company,â€ť Bielen said.
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