Great-West Lifeco Inc. has announced that its European subsidiary, Canada Life Group, has reached an agreement to acquire Legal & General International (Ireland) Limited (LGII). Terms of the transaction were not disclosed.
 
Launched in 2007, LGII is a subsidiary of the Legal & General Group Plc and is based in Dublin, Ireland, a country with a leading international financial services centre. LGII provides quality investment and tax planning solutions, primarily focused on the UK high net worth market. LGII has over 4,000 UK offshore bond policies with assets under administration of ?2.5bn (as at 30 October 2014).

“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,” said Mahon.
 
Mark Gregory, L&G Group Chief Financial Officer said: “LGII falls outside L&G’s focused strategy.  This transaction is part of our ongoing disposal programme of our peripheral assets.”
 
Sean Christian, Executive Director Offshore, Canada Life commented: “The proposed transaction complements our existing offshore business in both the Isle of Man and Dublin. We look forward to continued success in the offshore market.”
 
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.