Transaction will add approximately 90,000 medical members
WINNIPEG, April 9, 2007 – Great-West Lifeco Inc. today announced that its U.S. subsidiary, Great-West Life & Annuity Insurance Company, has entered into an agreement to acquire an 80% majority interest in Benefit Management Corp., whose principal subsidiary is Allegiance Benefit Plan Management, Inc., a Montana-based third-party administrator of employee health plans. The existing majority shareholder will retain a 20% interest in Benefit Management Corp.
Lifeco expects the transaction will be accretive to earnings in 2007 and subsequent years.
The transaction will add nearly 90,000 medical members to Lifeco’s Great-West Healthcare division. It includes Allegiance’s physicians and hospitals network, as well as Benefit Management Corp.’s other subsidiaries. These include a new company that was created to sell fully-insured health plans in Montana, and a company that provides medical management services, primarily in Montana.
Allegiance is the leading medical administrator for large employer groups in Montana and has the second largest overall market share among health plans in the state.
“The transaction includes an attractive provider network, which will further enhance Great-West Healthcare’s strong provider network position within Montana and its surrounding states. This is also an excellent growth opportunity within the fully insured marketplace,” said Raymond L. McFeetors, President and Chief Executive Officer of Great-West Lifeco Inc.
The Allegiance companies will retain their names and operate as subsidiaries of Great-West Life & Annuity, with management and service staff remaining in place.
“We look forward to working with Allegiance to continue improving on what is already a strong position in Montana, and expanding the products and solutions we bring to employers throughout the state,” said Rick Rivers, Executive Vice-President, Great-West Healthcare.
The acquisition of Benefit Management Corp.’s insurance company subsidiaries is subject to regulatory approval. The transaction is expected to close in the second quarter of 2007.
Great-West Healthcare, a division of Great-West Life & Annuity, is a national employee benefits provider with expertise in self-funding and health care management solutions. Nationally, the division operates a health care network that includes 4,275 hospitals and 578,000 providers and provides health care services to 2.2 million people.
Great-West Life & Annuity Insurance Company, headquartered in metro-Denver, serves its customers through a full range of health care plans, life and disability insurance, annuities, and retirement savings products and services. It is an indirect, wholly owned subsidiary of Great-West Lifeco Inc. Great-West Life & Annuity Insurance Company is not licensed to do business in New York. Products are sold in New York by its subsidiary, First Great-West Life & Annuity Insurance Company, White Plains, N.Y.
Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company with interests in the life insurance, health insurance, retirement savings, and reinsurance businesses. Lifeco has operations in Canada, the United States and Europe through The Great-West Life Assurance Company, Great-West Life & Annuity Insurance Company, London Life Insurance Company and The Canada Life Assurance Company. Lifeco and its companies have more than $210 billion in assets under administration. Great-West Lifeco is a member of the Power Financial Corporation group of companies.Tags: Great-West Life