Deals

Great-West Sells U.S. Insurance Unit in $1.2 Billion Deal

  • Canadian firm sells U.S. individual life and annuity business
  • Shares of Great-West have biggest intraday drop since May 2017

A man walks past the Dai-ichi headquarters in Tokyo.

Photographer: Tomohiro Ohsumi/Bloomberg

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Great-West Lifeco Inc. agreed to sell its U.S. individual life insurance and annuity business to Dai-ichi Life Holdings Inc.’s Protective Life Corp. in a deal valued at C$1.6 billion ($1.2 billion).

The transaction value includes a capital release of about $400 million, the Winnipeg, Manitoba-based insurer said Thursday in a statementBloomberg Terminal. Great-West expects a book-value loss of $70 million, and $57 million of transaction costs. The business transferred includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities and closed block life insurance and annuities.