Canada-based Manulife Financial’s US division John Hancock Financial has completed the acquisition of New York Life Insurance’ s Retirement Plan Services (RPS) business.
First announced in December 2014, the deal’s financial terms still remain undisclosed.
The acquired business will be included in the John Hancock Retirement Plan Services (JHRPS), expanding its retirement plan assets under administration.
JHRPS’s retirement plan assets under administration will increase to $135bn and it will serve around 55,000 retirement plans and 2.5 million plan participants.
Manulife Financial president and CEO Donald Guloien said: "Manulife is a major player in the pensions business in Canada, the US, Hong Kong and Indonesia.
"The completion of this transaction, in addition to our successful acquisition of Standard Life’s Canadian operations, significantly increases our retirement plan services business overall."
John Hancock Financial president Craig Bromley said: "Retirement Plan Services is a significant portion of John Hancock’s wealth business, and having greater scale, added capabilities and talent, positions us as a major plan provider in the US retirement plan business."
The deal is said to accelerate Manulife’s growth strategy for wealth and asset management businesses across the globe and complements recent investments in similar businesses in Canada and Asia.
It will also expand the firm’s operations in the mid-case and large-case retirement plan markets in the US.
In December, New York Life also signed an agreement to acquire 60% of John Hancock’s closed block comprised primarily of participating whole life insurance, through reinsurance.
Subject to receipt of required regulatory approvals and other closing conditions, it is expected to be completed later this year.
Image: John Hancock has completed the acquisition of Retirement Plan Services business from New York Life Insurance. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.