Manulife Financial’s U.S. division and New York Life have entered into an agreement under which John Hancock will acquire New York Life’s retirement plan services (RPS) business. In addition, New York Life has agreed to assume, on a reinsurance basis, 60% of certain John Hancock life insurance policies.
Financial terms of the deal weren’t disclosed.
John Hancock’s acquisition of New York Life’s RPS business will increase John Hancock’s RPS assets under administration by approximately 60% and accelerate its expansion into the mid- to large-case private sector retirement plan markets.
The resulting combined RPS businesses will consist of approximately US$135 billion in assets under administration, 55,000 retirement plans and 2.5 million plan participants.
“This transaction, similar to our recently announced acquisition of Standard Life’s Canadian operations, will significantly increase our retirement plans business overall,” says Manulife CEO Donald Guloien. “When completed, these transactions will each accelerate our strategy to grow our wealth and asset management businesses around the world.”
The transaction is expected to close in the first half of 2015, subject to regulatory approvals and other customary closing conditions.
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