Readers are referred to the cautionary note regarding Forward-Looking Information and Non-IFRS Financial Measures at the end of this release. Not for distribution to U.S. newswire services or for dissemination in the U.S.
Winnipeg, MB (Jul. 19, 2013) – Great-West Lifeco Inc. has announced that it has, through its indirect wholly-owned subsidiary Canada Life Limited, completed its previously announced �1.3 billion acquisition of Irish Life Group Limited.
“The closing of this transaction marks a significant milestone for our companies in Ireland,” said Paul Mahon, President and CEO. “We are now the leading provider of life insurance, pensions and investment management in Ireland, consistent with Great-West Lifeco’s global business strategy of developing significant market positions in the sectors where the Company participates. Combining the businesses of Irish Life and Canada Life in Ireland under the Irish Life brand will help ensure that Irish Life remains the leading brand in the Irish financial services market,” Mahon said. “There is a strong commitment to customer service which will be maintained as we integrate the companies.”
Coincident with the transaction closing, Great-West Lifeco announced that Bill Kyle, Executive Vice-President, Wealth Management, has been appointed as Chief Executive Officer of Irish Life. Kyle has been associated with Great-West Lifeco’s subsidiaries for 34 years in increasingly senior roles. Most recently, he has led the integration of the company’s Canadian group and individual wealth businesses, which serve more than two million policyholders with over $88 billion in assets.
As a result of the closing of the acquisition, Great-West Lifeco’s 48,660,000 outstanding subscription receipts will, in accordance with their terms, be automatically exchanged on a one-for-one basis for common shares of Great-West Lifeco. In addition, pursuant to the terms of the subscription receipts a dividend equivalent payment of $0.3075 per subscription receipt will also be payable to holders of subscription receipts as a result of Great-West Lifeco having declared a dividend of $0.3075 per common share payable to common shareholders of record on May 31, 2013. Great-West Lifeco expects that trading in the subscription receipts will be halted prior to the commencement of trading on July 18, 2013 and that the subscription receipts will be delisted as at the close of business on July 18, 2013. The subscription receipt exchange will increase the total number of outstanding common shares to 1,000,450,840.
About Irish Life
Irish Life is Ireland’s largest life, pensions and investment management business with over one million customers and €37bn of assets under management. Founded in 1939, it operates almost exclusively in Ireland, where it is the number one player in the life and pensions market. It has a very strong reputation for service excellence and product innovation.
About Canada Life (Ireland)
Canada Life is one of Ireland’s leading life, pension and investment providers, with over 150,000 customers. Established in Ireland in 1903, the Canada Life Group has grown to be a modern and dynamic international financial services business.
The Canada Life Group – which employs more than 600 people in Ireland and is already the largest Canadian employer in Ireland – serves as a hub for the company’s expanding presence in Europe. Its products are distributed through a network of over 1,500 independent brokers as well as more than 100 sales associates nationwide.
The company’s German business, Canada Life Europe, headquartered in Ireland, is recognised as one of the leading international providers of pension products in Germany.
Setanta Asset Management, its primary investment manager, manages funds for Irish, German and Canadian clients with a consistent strong fund performance record.
Also based in Dublin are Canada Life’s European Information Services Division, providing the main data centre for its European businesses and the European headquarters of Canada Life Reinsurance, its international reinsurance business.
Great-West Lifeco Inc. (TSX:GWO) is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. Great-West Lifeco has operations in Canada, the United States, Europe and Asia through Great-West Life, London Life, Canada Life, Irish Life, Great-West Financial and Putnam Investments. Great-West Lifeco and its companies have $582 billion* in assets under administration and are members of the Power Financial Corporation group of companies.
* Assets as of March 31, 2013.
SOURCE: Great-West Lifeco Inc.
Cautionary Note Regarding Forward-Looking Information
This release contains some forward-looking statements about Great-West Lifeco, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” and similar expressions or negative versions thereof. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects and possible future action by Great-West Lifeco, including statements with respect to the expected benefits of acquisitions or divestitures, are also forward-looking statements. Forward-looking statements are based on expectations and projections about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about Great-West Lifeco, economic factors and the financial services industry generally, including the insurance and mutual fund industries. Material factors or assumptions that were applied in formulating the forward-looking information contained herein include the assumption that the business and economic conditions affecting Great-West Lifeco’s operations will continue substantially in their current state, including, without limitations, with respect to industry conditions, general levels of economic activity, market prices for products provided, business competition, continuity and availability of personnel and third party service providers, local and international laws and regulations, foreign exchange rates and interest rates, inflation, taxes, and that there will be no unplanned material changes to Great-West Lifeco’s facilities, customer and employee relations and credit arrangements.