Great-West to Acquire MetLife 401(k) and DB Business

June 26, 2006 (PLANSPONSOR.com) - A long-rumored merger was confirmed Monday when Great-West Lifeco Inc. announced that its US subsidiary Great-West Life & Annuity Insurance Company has agreed to acquire from Metropolitan Life Insurance Company and affiliates part of MetLife's 401(k) and defined benefit business.

According to  the announcement , the agreement includes nearly 2,600 plans representing around 300,000 participants and $7.5 billion in assets. It includes full-service bundled small and mid-sized 401(k) as well as some defined benefit business. The acquisition nearly doubles the number of participants served by Great-West’s full-service 401(k) business, the companies said.

The acquisition also includes the associated dedicated distrubution group including wholesalers, relationship managers and sales associates, Great West said in the announcement.

Following the transaction, which is expected to close in the fourth quarter of 2006, Great-West will provide its full-service 401(k) program, retirement products and services to more than 20,100 plans representing more than 3.2 million participants with in excess of $94.1 billion in assets.

“This acquisition advances our strategy to position Great-West Life & Annuity as a top provider of retirement plans and services in the US,” said Raymond McFeetors, President and Chief Executive Officer of Lifeco, in the announcement. “It gives us significantly broader presence in our target market, the mid-size 401(k) segment, where we’ve already established ourselves as an innovative and growing player.”

 

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