NU Online News Service, Nov. 20, 2003, 11:00 a.m. EST – Great-West Retirement Services, a unit of Great-West Life & Annuity Insurance, Denver, announced its acquisition of the group retirement business of Federated Insurance Companies, Montreal.
Federated Insurance customers were given the option of converting their policies to Great-West or moving their business to another provider. Nearly 87% chose to move to Great-West, the company says.
Great-West says it converted 649 plans from Federated’s 401(k) client base.
Only those qualified retirement plans with Federated’s group annuity or flexible premium annuity products (401(k) and profit-sharing plans) were involved in the transaction with Great-West Retirement Services, says Mark Scharmer, Federated’s executive vice president, insurance operations.
Federated will continue to sell and service retirement plans, such as simplified employee pensions, IRAs and nonqualified plans, Scharmer says.