A Japanese life insurer is acquiring a Canadian life insurer’s U.S. individual life and annuity business.
Protective Life Corp., a U.S.-based subsidiary of Dai-ichi Life Holdings Inc. of Tokyo, has agreed to acquire most of the U.S. individual life and annuity business of Great-West Lifeco Inc. through a reinsurance arrangement.
The deal has a value of about $1.2 billion, in U.S. dollars, according to Protective Life and Great-West.
(Related: Lincoln Financial Agrees to Acquire Liberty Mutual Life Unit)
Great-West says the businesses being transferred reported $95 million in net earnings during the first three quarters of 2018, meaning that the deal value amounts to about 9.7 times annual earnings.
Protective Life and Great-West hope to complete the deal by June 30.
What Dai-Ichi Is Getting
Dai-ichi Life acquired Protective Life in 2015, and this is the fourth major deal Protective Life has announced since that deal closed.