Jeff-Pilot to acquire Canada Life's U.S. benefits business.(Deals)

National Underwriter Life & Health-Financial Services Edition, January, 2004 by Bell, Allison

Jefferson-Pilot Corp. has agreed to acquire most of the U.S. benefits business of The Canada Life Assurance Company from Great-West Lifeco Inc., Winnipeg, through a reinsurance arrangement.

Jefferson-Pilot has agreed to spend a total of $200 million to pay ceding commissions to Great-West and increase statutory surplus levels at the acquired operations.

Jefferson-Pilot hopes to complete the deal by March 31.

"While this is a relatively modest-size acquisition for us, we think it's a very attractive deal," Jefferson-Pilot President Dennis Glass said during an analyst conference held to discuss the deal. "We define group insurance as one of our higher-growth-potential businesses."

Great-West is selling the Canada Life U.S. group...

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