Empower Retirement is buying the retirement plan business of Massachusetts Mutual Life Insurance Co., which has some $167 billion in assets, 2.5 million participants and 2,000 employees.
The news, announced early Tuesday, comes three weeks after Empower wrapped up its purchase of RIA and robo-advisor Personal Capital, which works with $13 billion in client assets, for roughly $1 billion.
Its latest deal is structured as “a reinsurance transaction for a ceding commission of $2.35 billion,” according to a statement, and is expected to close in the fourth quarter. Plus, Empower has pledged to support the MassMutual business with $1 billion of required capital after combining it with its own retirement plan operations.
The two entities say they plan to work together to sell digital insurance products from Haven Life Insurance Agency. Also, Empower and Personal Capital clients will be able to buy MassMutual’s voluntary insurance and annuities.