Lifeco’s U.S. focus to be on its financial services business
WINNIPEG, April 1, 2008 – Great-West Lifeco Inc. announced today that its U.S. subsidiary Great-West Life & Annuity Insurance Company, has completed the sale of its health care business, Great-West Healthcare, to a subsidiary of CIGNA Corporation. Great-West Life & Annuity has received gross consideration of US $1.5 billion in cash and is retaining an estimated US $750 million representing the amount of equity invested in the healthcare business at close.
Great-West Healthcare provides a variety of medical, dental, vision, life and disability coverage or other services to more than 4,000 employer groups and 1.9 million individuals across the United States.
“Great-West Lifeco has been pursuing a strategy to expand its financial services business in the United States, and this transaction – along with our acquisition in 2007 of Putnam Investments – is a major strategic step forward,” said Raymond L. McFeetors, President and Chief Executive Officer of Great-West Lifeco. “Going forward in the U.S., Lifeco will focus on the financial services business, and in particular, asset accumulation, asset administration and fund management.”
Great-West Life & Annuity Insurance Company, headquartered in metro Denver, serves its customers through a full range of retirement savings products and services, life insurance and annuities. 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, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and its companies have more than $394 billion in assets under administration and are members of the Power Financial Corporation group of companies. www.greatwestlife.com.Tags: Great-West Life