Ameritas Life Insurance Corp. (Ameritas), headquartered in Lincoln, Nebraska, has signed a definitive agreement to acquire the 401(k) plan business of The Guardian Insurance & Annuity Company, Inc.
With this acquisition, Ameritas is delivering on its commitment to grow its retirement plans business. The acquisition provides Ameritas the opportunity to further build business scale, enter into a new strategic distribution relationship and deepen sales efforts in existing distribution channels. The company says the transaction reinforces its commitment to helping business owners and their employees plan and prepare for a more rewarding retirement.
“Guardian determined it will be challenging for us to achieve the scale necessary to make the 401(k) business successful for the long-term. That said, Guardian continues to believe there is opportunity within this demographic segment of the market and the 401(k) business and remains committed to being a part of the business’ ongoing success. As a show of that commitment, Guardian and Ameritas have established a long-term strategic marketing relationship under which Ameritas will provide 401(k) products and services through our agency system,” Guardian tells PLANSPONSOR.
In a statement to PLANSPONSOR, Ameritas said, “At the close of the transaction, the retirement plans division of Ameritas will have assets under administration in excess of $10 billion consisting of over 6,000 employer-sponsored retirement plans serving over 150,000 individual plan participants. Guardian clients can expect to receive the same high levels of service and support that they have come to expect.”
Bret Benham, Ameritas senior vice president – Retirement Plans, said, “We see this transaction as an opportunity to build on an exceptional legacy of success and add even greater value to [Guardian’s] agents, advisers, plan sponsors and participants. Our organizations are committed to working together to assure a smooth transition, and even more importantly, grow a brighter future for the customers who trust us with their retirement savings.”
The retirement plans division of Ameritas provides retirement plan investment and administration services to more than 3,000 businesses and public entities nationwide. Retirement plan clients range from sole proprietors to the large corporate, non-profit and governmental employers.